Tanzania Secures $2.33 Billion Railway Funding to Transform East African Trade
Dar es Salaam, 29 April 2026
Standard Chartered has arranged massive financing that could reshape regional commerce across East Africa. The funding will construct 430 kilometres of modern railway connecting Tanzania’s main port to inland markets, forming part of an ambitious 2,561-kilometre network designed to link five countries.
Complex Financing Structure Brings Multiple Partners Together
The $2.33 billion syndicated financing facility, successfully arranged by Standard Chartered on Tuesday, 28 April 2026, represents a sophisticated blend of international funding sources [1]. The financing package combines export credit agencies, commercial banks and development finance institutions to support the construction of two specific sections of Tanzania’s Standard Gauge Railway project [1][2]. Turkey’s Yapi Merkezi and China’s China Civil Engineering Construction Corporation will undertake the construction works, demonstrating the international nature of this infrastructure development [1][2]. The funding specifically targets Lot 3 and Lot 4 of the railway, covering approximately 430 kilometres from Makutupora to Isaka [3].
Strategic Railway Sections Connect Key Economic Corridors
The two stretches being financed form part of a planned 1,219-kilometre railway line linking Dar es Salaam, Tanzania’s commercial capital and main port, to Mwanza, the lakeside city on Lake Victoria [1][4]. This particular section represents a crucial component of Tanzania’s broader ambition to construct a modern railway network spanning at least 2,561 kilometres [1][4]. The railway is designed to connect Tanzania with its landlocked neighbours Rwanda, Burundi, Uganda and the Democratic Republic of Congo, positioning the country as a regional transport hub [1][4]. Standard Chartered’s role extends beyond this current financing, having previously arranged a $1.46 billion ECA-led financing for SGR Lots 1 and 2, which was signed in 2020 [3].
Export Credit Agencies Provide Substantial Backing
The financing structure reveals significant support from European export credit agencies, with EKN and SEK from Sweden, KUKE from Poland, and SACE from Italy serving as fronting ECAs, backed by reinsurance from two additional unnamed agencies [3]. SACE’s involvement builds on its previous support for Lots 1 and 2 of the same project, with Ciro Aquino, Head of Task Force Africa at SACE, stating that this achievement reflects the agency’s commitment to strengthening Italian supply chains and positioning Italian companies as key partners in Africa’s connectivity [3]. The financing composition for Lots 3 and 4 includes $1.32 billion in ECA financing signed in 2025 and 2026, plus $462 million in long-term commercial bank and development finance institution financing that was signed in 2023 [3]. Standard Chartered acted as Sole Global Coordinator, Bookrunner, Mandated Lead Arranger, Facility Agent and Lender for the Government of the United Republic of Tanzania [3].
Regional Trade Transformation and Economic Impact
The railway project represents part of a broader continental push to boost intra-African trade under the African Continental Free Trade Area (AfCFTA), with efficient rail systems viewed as critical for easing port congestion and lowering freight costs [2]. For Tanzania, the project signals a strategic shift toward positioning Dar es Salaam as a regional trade gateway, competing with ports in Kenya and beyond [2]. The Standard Gauge Railway is expected to provide reliable transportation for both people and cargo, connecting the port of Dar es Salaam to key growth corridors in western Tanzania and neighbouring states [1][3]. Herman Kasekende, CEO and Head of Coverage for Standard Chartered Tanzania, emphasised the bank’s commitment to financing large-scale infrastructure that supports sustainable growth in Africa, noting the railway’s potential to position Tanzania as a premier logistics hub while boosting regional trade and job creation [3]. The project also includes SGR Lot 5, covering the Isaka to Mwanza section of approximately 249 kilometres, which is being delivered by China Civil Engineering Construction Corporation and financed by a $559 million Sinosure-covered facility that was drawn in 2025 [3].