Tanzania, Turkiye’s Exim Bank seal 280m US dollar funding for two sections of SGR

ANTALYA: TANZANIA is in the final stages of negotiations with Turkiye’s Exim Bank for a 280 million US dollars financing package to complete the third and fourth sections of the Standard Gauge Railway (SGR), a move expected to accelerate the country’s strategic transport infrastructure.

The minister for Finance, Ambassador Khamis Mussa Omar revealed this on Thursday stating that the two sections, covering more than 700km, have a combined cost of 1.6bn US dollars, with 1.32bn US dollars already secured, leaving 280m US dollars to complete the financing.

The discussions took place in Antalya, Turkey, on the sidelines of the 31st Conference of Parties (COP31) to the United Nations Framework Convention on Climate Change, between a Tanzanian delegation led by Ambassador Omar and a Turkish Exim Bank delegation headed by its Chief Executive Officer, Ali Guney.

Speaking, Ambassador Omar said the SGR is a major infrastructure undertaking spanning more than 2,000km, designed to connect Dar es Salaam with western regions, including Mwanza and Kigoma, and neighbouring countries such as Rwanda, Uganda, Burundi and the Democratic Republic of Congo.

Elaborating, he said the railway is divided into six lots, with the first two sections linking Dar es Salaam and Dodoma already completed and operational, attracting positive public response.

Additionally, the minister highlighted the railway’s electric-powered technology, saying it aligned with COP31’s clean energy agenda and positioned Tanzania’s railway as a sustainable transport model for regional connectivity.

Mr Guney said the bank recognises the railway’s importance to Tanzania and neighbouring countries, adding that its board of directors would meet this month to consider the financing request.

He said the bank is also exploring broader economic cooperation with Tanzania, including financing future infrastructure projects such as roads and bridges, as well as expanding trade relations.

The discussions are in line with trade ambitions set by President Samia Suluhu Hassan and Turkish President Recep Tayyip Erdogan, who seek to raise bilateral trade to at least 1bn US dollars.