(Posted 01st November 2026)
Tanzania has secured US$1.39 billion in financing for a 424-kilometre section of its Standard Gauge Railway (SGR), equivalent to approximately Sh3.67 trillion, as the government moves to accelerate construction and strengthen regional transport connectivity.
The financing will support the Makutupora–Tabora and Tabora–Isaka railway sections, which form part of Tanzania’s wider plan to connect the port of Dar es Salaam with Mwanza on the southern shores of Lake Victoria.
Transport Minister Prof Makame Mbarawa announced on October 24, 2026, that funding for the project was available but expressed concern over delays arising from contractors’ planning and implementation.
Despite the availability of financing, construction progress remains a major concern. During an inspection tour in October, Prof Mbarawa said contractors needed to improve their planning and delivery to ensure the project remained on course.
Payments for construction work depend on the submission of interim payment certificates, which verify completed work before funds are disbursed.
To improve implementation, the government has reorganized construction activities into five smaller sections to facilitate closer supervision and strengthen accountability. The assignment initially allocated to One Group, covering 100 kilometres, has been reduced to 45 kilometres, with the remaining work redistributed.
Contractors have also been directed to provide detailed daily work schedules outlining activities such as bridge construction and railway embankment development. Tanzania Railways Corporation is expected to strengthen monitoring to ensure contractors meet their contractual obligations.
The measures are intended to address implementation bottlenecks and translate the available financing into visible construction progress. Achieving the 2028 completion target will depend on the effectiveness of the new arrangements and contractors’ ability to meet agreed schedules.
Once completed and integrated with connecting transport infrastructure, the railway is expected to improve the movement of goods between Tanzania’s principal seaport and inland markets.
For regional traders, the expanded network could provide an alternative to road transport for moving bulk commodities and containerized cargo over long distances. Rail freight could also ease pressure on highways, improve cargo-handling efficiency and support more predictable supply chains.
The project is particularly significant for land-linked economies, including Rwanda, Burundi and the Democratic Republic of Congo, whose traders depend on reliable access to regional seaports.
By improving rail connectivity between the Indian Ocean coast and the Lake Victoria region, Tanzania aims to strengthen its position as a regional trade and logistics hub while providing neighbouring economies with more efficient routes to international markets.
