We are bullish further growth will follow SGR

TANZANIA: ONE of the major unfolding news that does not get nearly as much attention it deserves is the ongoing developments in the construction of the standard gauge railway (SGR) that will extend to Burundi and later the DR Congo with a 696.41 million US dollar financing package approved by the AfDB in December 2023.

That is one of the ambitious strategic projects in Tanzania that is expected to transform the Central Transport Corridor into an economic corridor and improve trade and manufacturing opportunities along the project.

The Minister for Transport Prof Makame Mbarawa witnessed the successful trial of the Standard Gauge Railway (SGR) train, consisting of 14 carriages, by travelling on the train from the Dar es Salaam station to Morogoro on Monday last week.

Tanzania Railways Corporation (TRC) Director General, Masanja Kadogosa, who accompanied the minister, said the corporation would ensure the completion of the SGR infrastructure on time and conduct safety verification trials. By early July, the SGR trains will be able to run from Dar es Salaam to Dodoma.

According to him the construction of the first section of the railway is complete by 98.98 per cent, with the major remaining part being the port entrance at Dar es Salaam.

The SGR construction continues at various percentages across all sections, with the first section, Dar es Salaam – Morogoro, completed by 98.90 per cent, the second section, Morogoro – Makutupora, by 96.35 per cent and the third section, Makutupora – Tabora, by 13.98 per cent.

The fourth section, Tabora – Isaka, is completed by 5.44 per cent, the fifth section, Mwanza – Isaka, by 54.01 per cent, and the sixth section, Tabora – Kigoma, in the preparatory stages of construction commencement.

A few days earlier in the previous week, the Finance Minister, Mwigulu Nchemba met with representatives from the African Development Bank (AfDB) and the Burundi government to discuss technical aspects of the construction of the SGR link to Burundi.

Dr Nchemba and Burundi’s Infrastructure minister Dieudonné Dukundane met in Dodoma on March 15 to compare notes from technical experts from both sides who have been thrashing out the procurement and other project nitty-gritty.

We are optimistic about the growth and development prospects of Tanzania and the entire corridor when the railway construction project is completed because of its great potential to stimulate economic activities along the corridor.

According to the AfDB, the project will connect and unlock key economic processing zones, industrial parks, Inland Container Depots (ICDs), and population centres along the central corridor, thereby enhancing accessibility and promoting economic activities.

The SGR project will have the potential to significantly lower transport costs in Tanzania and the region, hence reducing prices of goods and services.

We see the project as a vital lever for transforming local economies and social lives, especially through increased market and business linkages.