Mpango highlights SGR’s vast potential to AfCFTA

VICE – PRESIDENT Dr Philip Mpango has laid out the Standard Gauge Railway (SGR)’s vast potential for the African Continental Free Trade Area (AfCFTA), by facilitating the flow of goods, people, allied services and logistics.

Dr Mpango said the SGR which will link the Kigoma Region in Tanzania to Kindu in the Democratic Republic of Congo (DRC) via Gitega in Burundi, is the easiest gate way to and from the East African Community (EAC) countries as well as the Southern Africa Development  SADC market.

“The governments of the three countries have expressed commitment to execute the project in which Tanzania has already implemented related projects that will stimulate the existence of this important project,” Dr Mpango said.

The VP made the remark yesterday while leading discussions with investors on the SGR project at the Africa Investment Forum (AIF)   held in Abidjan, Ivory Coast. Dr Mpango is representing President Samia Suluhu Hassan.

According to Dr Mpango, 50 per cent of cargo from Tanzanian ports is transported to Burundi and DRC, thus necessitating the need for having such railway. He said the population of the three countries which is approximated to be 170 million provides reliable market for commodities which will be transported through the modern railway.

The VP further said that the project will also save funds incurred in the maintenance of road infrastructure used to transport the commodities from the Tanzanian ports to Burundi and DR Congo.

For his part, Burundi’s Minister for Infrastructure, Dukundane Dieudonneè said that his country has been losing more than 17 million US dollars every year in transportation of goods, so the project will help to cut the transportation costs.

“The project will promote effective use of mineral resources available in these countries such as gold, lithium, colbat and nickel by selling them at the world markets.” He added.

The President of the African Development Bank (AfDB) Dr Adesina Akinwumi said that the bank sincerely supports the implementation of the project, which will help to improve the lives of people in Africa.

“The project is important for Tanzania, East Africa and Africa in general in doing business and uplifting the economy between countries in the Africa Continental Free Trade Area (AfCFTA )” he said.

Earlier, Executive Secretary of Africa Continental Free Trade Area (AfCFTA) Wamkele Mene said that business between African countries has been facing a number of challenges including high cost due to lack of friendly infrastructure.

He also commended the governments of Tanzania, Burundi and Congo for their vision in implementing the project which will stimulate trade in AfCFTA and attainment of  the African Agenda of 2063.

During the discussion, the Director General of the Tanzania Railway Corporation (TRC) Masanja Kadogosa presented the implementation plans of the project to various investors and explained the success achieved in the implementation of the previous SGR projects in Tanzania.

The Africa Investment Forum Market Days runs from 2-4 November in Abidjan, Ivory Coast. It is the first in-person meeting since 2019. The Market Days showcase billions of dollars in investment-ready transactions to participants from around the world.

Priority investment sectors for 2022 include renewable energy hydropower, gas infrastructure, railways, road, and water transport, agriculture, health, mining, fertiliser manufacturing, port infrastructure, and urban green transport.

Dr Mpango and other African leaders include Ethiopia’s President Sahle-Work Zewde; Ghanaian President Nana Akufo-Addo, President Emmerson Mnangagwa of Zimbabwe, Vice President of Liberia Jewel Howard Taylor José Ulisses Correia  Silva, Prime Minister of Cabo Verde and Prime Minister of Ivory Coast Patrick Achi had the opportunity to pitch their countries as investment destinations