Tanzanian president Samia Suluhu Hassan attended the signing of the $2.2 billion deal between the Tanzanian government and Chinese companies CCECC and CRCC.
The 2,561-kilometer railway line will link Dar es Salaam to Mwanza on Lake Victoria, and subsequent constructions have been planned for Burundi, the Democratic Republic of Congo (DRC), Rwanda, and Uganda.
Tanzania’s president said during the signing that the railway would be completed in 2026, 9 years after construction began.
Upon completion of the SGR, Tanzania will be better positioned to facilitate cross-border trade thanks to its strategic geographical position.
The project has so far cost $10.04 billion, or Sh24 trillion, including the latest contract.
The lack of local resources forces us to borrow for this important infrastructure and other sustainable development projects.
In order to reduce logistics costs for citizens of Tanzania and the Democratic Republic of Congo, who transport goods between them, a railway line was proposed.
According to the president, cargo transportation, which typically costs around $6,000 per tonne, would be reduced by at least $2000.
In 2027, transportation time by truck would be reduced from 30 days to 30 hours.
Over the past month, Tanzania has signed more than a dozen deals with East Asian countries.