African Development Bank Greenlights $696.41 Million for Phase 2 of Tanzania-Burundi-DRC SGR

The African Development Bank (AfDB) approved $696.41 million in financing for Tanzania and Burundi to utilize for Phase 2 of the Tanzania-Burundi-DRC SGR. Phase 2 of the SGR project will see the construction of 651 kilometers of one-way electrified railway connecting Burundi to Tanzania's current railway network all the way to the Port of Dar es Salaam.

 
This SGR project is divided into three sections: Tabora-Kigoma railway (411 kilometers), Uvinza-Malagarasi railway (156 kilometers), and Malagarasi-Musongati in Burundi (84 kilometers). This railway will link Burundi directly to the port of Dar es Salaam, opening development potential for Burundi's mining and agricultural sectors.
 
The Tanzania-Burundi-DRC SGR project is anticipated to cost $3.93 billion. The AfDB's investment includes $98.62 million in grants for Burundi, as well as loans and guarantees for Tanzania totaling $597.79 million. The Bank will serve as the Initial Mandate Lead Arranger (IMLA), acquiring up to $3.2 billion from commercial banks, institutional investors, Export Credit Agencies (ECAs), and Development Financial Institutions (DFIs).
 
This Tanzania-Burundi-DRC SGR project will have an enormous regional impact since it will provide individuals and businesses in the region with access to very economical and effective long-distance transportation services. Burundi's large-scale mining, particularly nickel mining, and commercial agriculture will also gain considerably from the project. Furthermore, by connecting critical economic zones, population centers, and industrial parks located along the railway route, the project will stimulate industrialization and economic diversification.
 
This Tanzania-Burundi-DRC SGR project is in path with several major development strategies, including the East African Community (EAC) Rail Master Plan, the African Union (AU) Infrastructure Development in Africa Strategy, and the Bank's "High five" and "Integrate Africa" key priorities. The SGR project is also consistent with the Bank's Regional Integration Strategy Paper for East Africa and its Country Strategy Papers for Burundi and Tanzania.

Posted on : 20 Apr,2024

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