Tanzania signs $1.2bn facility for Tabora–Kigoma railway

FinancesInfrastructure

Thursday 5th November 2026

Aerial view of Dar es Salaam SGR station and elevated railway in March 2024; file image, not the Tabora–Kigoma section — Dar es Salaam SGR station and elevated railway, March 2024. Contextual file image of Tanzania’s railway network, not the Tabora–Kigoma works or financing ceremony. Image: Star TV Habari / Wikimedia Commons, CC BY 3.0. Resized and converted to JPEG.

By inAfrika Newsroom

Tanzania has signed a $1.2 billion commercial financing facility for the 411-kilometre electrified Tabora–Kigoma section of its Standard Gauge Railway, the African Development Bank said on 4 November.

Nine banks will provide the facility, co-arranged by Deutsche Bank and Société Générale. It includes $720 million in guaranteed lending and $480 million lent on Tanzania’s sovereign credit risk, AfDB said.

AfDB arranged a partial credit guarantee of up to $800 million, covering the protected principal and two years of interest. The guarantee backs lending; it is not another $800 million loan.

The facility is part of a $2.3 billion financing package that also includes export-credit funding and a further tranche still to be mobilised. Signing the commercial facility does not establish that construction is complete.

The bank had announced its syndication coordination agreement in December 2024. Lot 6 would extend the Central Corridor towards Kigoma and trade across Lake Tanganyika with the Democratic Republic of Congo.

Have a verified news development or story? Send news submissions and supporting materials to news@inafrika.co.tz

Article précédent

Article suivant