HomeBusinessInternationalTanzania ink a railway deal worth of $2.2 Billion with China

Tanzania ink a railway deal worth of $2.2 Billion with China
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The 2,561 Kilometer Railway line shall link the Indian Ocean Port of Dar es Salaam to Mwanza on Lake Victoria

Chinese communist party firm and the United Republic Of Tanzania agreed to construct the concluding segment of a railway line sighted at connecting the country’s principal port with its neighbors.

Tanzanian president Samia Suluhu Hassan, who observed the signing gesture, stressed that the putting up of the final segment of the Standard Gauge Railway (SGR) from Tabora to Kigoma in western Tanzania would be finalized in 2026, nine years after the initial date of its launching.

On Tuesday Morning The United Republic Of Tanzania signed a $2.2-billion agreement with a Chinese company to construct the last segment of a railway line aimed at linking the country’s main port with its landlocked neighbors.

The 2,561-kilometre (1,600-mile) line will connect the Indian Ocean port of Dar es Salaam to Mwanza on Lake Victoria, with eventual spurs to Burundi, the Democratic Republic of Congo (DRC), Rwanda, and Uganda.

Upon completion of the SGR, Tanzania will be in an upper post to make use of its prudent geographical positioning to ease up cross-border commercial trade, Stressed President Samia.

Hassan said Tanzania’s investment in the SGR had now reached $10.04 billion, including the latest contract. Tanzania must borrow for this significant infrastructure and other sustainable development projects because we have insufficient local resources, she said, dismissing criticism that the country was taking on too much debt.

Hassan stated the new railway would cut down cargo shipment costs between the Dar es Salaam port and the DRC from a minimum of $6,000 per tonne to about $4,000 once the project is completed and thoroughly up and running.

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