On the map of railway construction in East Africa, the landing of a huge amount of funds has injected strong impetus into Tanzania's standard gauge railway. Standard Chartered Bank recently announced that it has arranged a syndicated financing of over $2.33 billion specifically for the construction of the remaining three sections of the first phase of the Dar es Salaam to Mwanza project.

As the sole lender of Tanzania's Ministry of Finance, Standard Chartered Bank not only coordinates commercial capital, but also cleverly weaves a complex financial network involving export credit agencies.

This huge funding puzzle consists of different sections: for plot 3 and plot 4 from Makutubola to Ithaca, the total financing amount is 1.782 billion US dollars. This not only includes $1.32 billion in export credit support provided by Sweden's EKN and SEK, Poland's KUKE, and Italy's SACE, but also includes $462 million in long-term funds injected by commercial banks and development finance institutions in 2023. For the 5th section from Ithaca to Mwanza constructed by CCECC, a special financing of 559 million US dollars was secured with the guarantee of China Export Credit Insurance Corporation. It is worth noting that this is the third time Standard Chartered Bank has injected blood into the railway, and the previous $1.46 billion loan has successfully promoted the connection of the Dar es Salaam to Makutubola section.

Reshaping the logistics landscape in East Africa

Financial live water precision drip irrigation, the progress of the project is constantly changing. Land parcels 3 and 4, with a total length of 430 kilometers, are operated by Yapi Merkezi, while the fifth section is managed by Chinese enterprise CCECC for the final 249 kilometers. With the start of the track laying machines for these two railway sections, SGR's steel dragon will travel westward from Makutubola, crossing Morogoro and Dodoma, and ultimately reaching Mwanza.

The extension of railways is not only a reduction in physical distance, but also a reconstruction of the economic landscape. The Tanzania Railway Company has launched passenger services between Dar es Salaam and Dodoma in July 2024, and after the full line is completed, Tanzania will not only have a major artery running through the country, but also become a regional logistics hub. Keywords: transportation, railway transportation

As Herman Kasekende, CEO of Standard Chartered Bank Tanzania Branch, has stated, this project will lay the groundwork for sustainable growth in Africa by promoting regional trade and creating employment. As the train honks through the vast grasslands of East Africa, a closer East African community is becoming a reality as the railway tracks extend.Editor/Cheng Liting