Tanzania secures US$1.2B AfDB financing for Tabora-Kigoma railway
According to the authorities, the railway is expected to cut travel time between Dar es Salaam and Kigoma from more than 20 hours to about eight hours.
TANZANIA – The African Development Bank has finalized a US$1.2 billion commercial financing agreement for the Tabora-Kigoma railway, the sixth section of Tanzania’s standard gauge railway network, according to a bank announcement.
The 411-kilometre electrified line will extend the national network towards Lake Tanganyika, near the Democratic Republic of Congo and Burundi, and is scheduled for completion in 2030.
Financing structure and cost gap
The agreement is the first component of a broader US$2.3 billion financing package that the AfDB is expected to help structure.
The package includes a tranche backed by export credit agencies and additional financing to be arranged with a co-guarantor.
Tanzanian authorities estimate the total project cost at US$2.85 billion, leaving about US$550 million to be secured.
Construction was officially launched in July 2026. Chinese companies, including China Civil Engineering Construction Corporation and China Railway Construction Corporation, were awarded the work under a framework of financial and technical cooperation with China.
Travel times and regional trade impact
According to the authorities, the railway is expected to cut travel time between Dar es Salaam and Kigoma from more than 20 hours to about eight hours.
Once operational, it should improve transport conditions for agricultural and mining products and reduce logistics costs.
President Samia Suluhu Hassan said the SGR network may reduce the cost of transporting one ton of goods to US$4,000, compared with approximately US$6,000 currently, and cut delivery times to the DRC from around 30 days by road to approximately 30 hours by rail.
The Tabora-Kigoma section forms part of Tanzania’s SGR programme, launched in 2017, which will comprise between 1,219 and 1,231 kilometers of mainline track connecting Dar es Salaam with the central and western regions.
By connecting Kigoma to the network and to Dar es Salaam, the project aims to facilitate trade with the DRC and Burundi via the ports of Kigoma and Kalemie on opposite shores of Lake Tanganyika.
Meanwhile, Tanzania’s railway expansion coincides with rail infrastructure development in other East African countries.
For instance, Kenya is extending its SGR from Naivasha towards Kisumu and Malaba near the Ugandan border, while Uganda is developing a link between Malaba and Kampala.
Ultimately, the US$550 million financing gap and the 2030 delivery target will determine whether Tanzania’s corridor ambitions are realized on schedule.
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