Standard Chartered has arranged a $2.33 billion syndicated financing facility to support critical sections of Tanzania’s Standard Gauge Railway (SGR) project, marking a significant milestone in the region’s infrastructure development.
The financing, disclosed in a statement published on Wednesday, will fund the construction of Lots 3 and 4 of the railway, linking Makutupora to Isaka. The segment forms part of Tanzania’s broader plan to connect Dar es Salaam to Mwanza through a modern rail corridor aimed at improving trade and logistics efficiency.
According to the bank, the facility combines export credit agency-backed funding with long-term financing from commercial banks and development finance institutions, underscoring strong international support for the project.
The proceeds will be used by Yapi Merkezi to deliver approximately 430 kilometres of rail infrastructure covering Lots 3 and 4. Meanwhile, Lot 5, connecting Isaka to Mwanza, is being handled by China Civil Engineering Construction Corporation, supported by a separate $559 million Sinosure-backed facility coordinated by Standard Chartered.
The bank is playing multiple roles in the transaction, including Sole Global Coordinator, Bookrunner, Mandated Lead Arranger, Facility Agent, and Lender to Tanzania’s Ministry of Finance. The deal also involves export credit agencies such as Sweden’s EKN and SEK, Poland’s KUKE, and Italy’s SACE.
Tanzania’s Standard Gauge Railway is a flagship project designed to replace the country’s ageing metre-gauge rail system with a faster, higher-capacity network. The multi-phase project stretches from Dar es Salaam on the Indian Ocean coast to Mwanza on Lake Victoria, positioning it as a key logistics corridor for East Africa.
Once completed, the railway is expected to significantly reduce transport costs, improve cargo reliability, and enhance trade competitiveness across the region. It will also strengthen trade links with neighbouring countries, including Uganda, Rwanda, and the Democratic Republic of Congo.
Standard Chartered’s latest financing builds on its earlier involvement in the project, having arranged $1.46 billion for Lots 1 and 2 in 2020.
The railway initiative aligns with a broader regional push toward infrastructure-led growth. Governments across East Africa are increasingly investing in rail networks to ease pressure on road transport and eliminate logistics bottlenecks.
In February, Uganda announced plans to link its own SGR network to Tanzania’s system, creating a direct export corridor through Dar es Salaam port. The proposed linkage is expected to support mineral exports and provide landlocked countries with alternative trade routes.
Similar ambitions are being pursued in West Africa. In Nigeria, the Kano-Maradi railway project aims to connect northern Nigeria with Niger Republic, enhancing regional trade and mobility despite delays to its original 2026 completion timeline.
Analysts say such large-scale rail investments could redefine trade flows across the continent, with Tanzania’s SGR expected to emerge as one of East Africa’s most critical transport arteries.
