The Government has announced a major breakthrough in Tanzania’s railway sector after the Tanzania Railways Corporation (TRC) achieved enough financial stability to stop depending on government salary subsidies starting from the 2026/27 financial year.
The development was revealed in Parliament on Tuesday by Minister for Transport Prof. Makame Mbarawa while presenting the ministry’s TZS 2.87 trillion budget estimates for the 2026/27 financial year.
Prof. Mbarawa said the achievement marks a significant milestone in the ongoing transformation of the railway sector, driven by massive government investment in the Standard Gauge Railway (SGR), rehabilitation of the Meter Gauge Railway (MGR), and the revival of the TAZARA railway.
The minister said reforms initiated in 2017 have enabled TRC to gradually strengthen its operational efficiency and generate enough revenue to cover workers’ salaries without relying on state subsidies.
“The reforms have increased TRC’s operational capacity and improved its financial sustainability,” Prof. Mbarawa told Parliament in Dodoma.
At the centre of the railway transformation is the SGR project, which the Government says remains one of the country’s most strategic infrastructure investments aimed at boosting trade, reducing transport costs and improving regional connectivity.
According to Prof. Mbarawa, the SGR project is being implemented in two phases covering a total of 2,809 kilometres.
The first phase stretches 1,219 kilometres from Dar es Salaam to Mwanza, while the second phase includes 1,590 kilometres from Tabora to Kigoma and the Uvinza-Musongati section.
By March 2026, construction of the Dar es Salaam–Morogoro section and the Morogoro–Makutupora section had been substantially completed, with passenger train services already operational.
The 341-kilometre Mwanza–Isaka section has reached 68.77 percent completion.
The Government has also secured a concessional loan worth $1.277 billion, equivalent to about TZS 3.32 trillion, to speed up construction of the Makutupora–Tabora and Tabora–Isaka sections after earlier implementation delays.
Prof. Mbarawa said the funding will help accelerate completion of the railway project, which is expected to play a critical role in supporting economic growth and regional trade.
Passenger demand on the SGR route between Dar es Salaam and Dodoma has continued to rise sharply.
Between July 2025 and March 2026, a total of 2.51 million passengers used the service, compared to 2.05 million passengers during the same period in the previous financial year.
The increase of 22.4 percent, according to the minister, reflects growing public confidence in modern railway transport.
Cargo transportation through the SGR network is also increasing, with TRC transporting 102,452 tonnes of freight during the same period as the Government pushes to shift cargo movement from roads to rail.
To improve efficiency in cargo handling, the Government is continuing with the integration of SGR and MGR systems at Ruvu, where construction has reached 85 percent completion.
The project is expected to simplify cargo movement from the ports of Dar es Salaam and Tanga into the hinterland and neighbouring countries.
The Government is also building cargo transfer infrastructure at Bahi to improve interoperability between the two railway systems.
Beyond the SGR, the Government continues upgrading the ageing MGR network by replacing light rails with heavier ones and strengthening bridges through the Railway Fund.
Prof. Mbarawa said rehabilitation of the Kaliua–Mpanda section had reached 32.72 percent by March this year.
Meanwhile, nearly 99 percent of construction work on a new 6.2-kilometre railway line and bridge at Godegode–Gulwe has been completed to address recurring floods that have long disrupted railway operations in the Kilosa–Kidete–Igandu corridor.
The Government is also preparing to construct six dams along the Kinyasungwe River under the TIRP II project to reduce flooding and ensure uninterrupted railway operations throughout the year.
On the TAZARA railway, Prof. Mbarawa said Tanzania and Zambia have intensified efforts to revive the strategic railway line following directives issued by President Samia Suluhu Hassan during the opening of the 13th Parliament in November last year.
The two countries officially launched the rehabilitation project in Lusaka on November 20, 2025, after signing an operational agreement with China Civil Engineering Construction Corporation.
Under the agreement, the company will invest $1.4 billion, equivalent to about TZS 3.6 trillion, to modernise the railway infrastructure.
The project is expected to increase annual cargo capacity to 2.4 million tonnes and create around 100,000 jobs.
The Parliamentary Standing Committee on Infrastructure also praised the Ministry of Transport and TRC management for improving the corporation’s financial performance.
Committee chairperson Selemani Kakoso said TRC’s ability to finance salaries through internally generated revenue demonstrates improved efficiency and sound management.
He commended Prof. Mbarawa and TRC Director General Masanja Machibya for what he described as strong leadership and effective supervision of the railway sector.
Kilombero Member of Parliament Aboubakar Asenga also praised the impact of the SGR project, saying the railway service between Dar es Salaam and Dodoma has transformed transport by improving speed, safety and convenience for passengers.
He urged the Government to ensure timely financing for the remaining sections toward Mwanza and Kigoma to maximise the railway sector’s contribution to the national economy.
For the 2026/27 financial year, the Ministry of Transport is seeking parliamentary approval for TZS 2.87 trillion, of which TZS 2.74 trillion will finance development projects in railways, ports and aviation, while TZS 126.04 billion will cover recurrent expenditure.
