The Government of Tanzania has received strong international financial backing amounting to about USD 1.277 billion to accelerate the construction of the Standard Gauge Railway (SGR), a key national project expected to transform transport, trade, and economic growth across the country.
The financing will support Lot 3 and Lot 4 of the SGR line, stretching from Makutupora in Singida Region to Isaka. Once completed, this section will form a critical link in Tanzania’s modern railway network, improving the movement of goods and passengers, reducing transport costs, and strengthening regional trade connections.
Following the signing of the co-financing agreement, the Minister of Finance, Khamis Mussa Omar, held discussions with the Ambassador of Italy to Tanzania, Giuseppe Coppola, the Ambassador of Sweden, Charlotta Ozaki Macias, and the Ambassador of Poland, Sergiusz Wolski, together with representatives of Export Credit Agencies that supported the project.
The financing partners include EKN Sweden, SACE of Italy, and KUKE of Poland, working in coordination with Standard Chartered Bank to facilitate the funding arrangement.
Minister Omar expressed appreciation to the development partners for their continued trust and support, saying their contribution reflects strong confidence in Tanzania’s economic reforms and long-term development direction.
He said the partnership is a major step in strengthening cooperation between Tanzania and its international partners, especially in financing strategic infrastructure projects that drive industrial growth, regional integration, and improved livelihoods for citizens.
He further stressed that the government remains committed to ensuring efficient implementation of the SGR project, in line with the national development vision, including Vision 2050, which aims to build a strong, competitive, and inclusive economy.
On their part, the ambassadors and representatives of the financing institutions praised Tanzania for the ongoing transformation in infrastructure development, particularly the expansion of railways, roads, and other key economic facilities.
They said the SGR project is expected to bring wide benefits to citizens by improving access to markets, boosting business opportunities, supporting tourism, and connecting major economic zones along the railway corridor.
The partners reaffirmed their readiness to continue working closely with the Government of Tanzania to ensure successful completion of the project, which is widely seen as a catalyst for long-term economic development in the region.
