Burundi and Tanzania have reached a major milestone by signing a $2.14 billion financing agreement on January 30 for the construction of a 282 km railway. This ambitious project, to be executed by renowned Chinese companies China Railways Engineering Group Limited (GREGC) and China Railway Engineering Consulting Group Co Ltd (CREDC), aims to enhance transport infrastructure and boost local economies.
The railway, jointly funded by both countries with support from the African Development Bank (AfDB), will connect Uvinza in Tanzania to Musongati in Burundi, with two distinct sections:
- 180 km between Uvinza and Malagarasi (Tanzania)
- 102 km between Malagarasi and Musongati (Burundi)
This initiative is part of China’s Belt and Road Initiative in Africa, aiming to open up the Great Lakes region and facilitate trade by linking Dar es Salaam (Tanzania) to Katanga (DRC). The project seeks to enhance export competitiveness and foster economic growth in the involved countries.
It also forms part of the second phase of Tanzania’s railway development, covering three of the four sections of the corridor connecting Tabora to Kigoma, complementing the first phase extending from Dar es Salaam to Mwanza.
Since 2017, Tanzania has been developing a standard-gauge railway network spanning 2,561 km, with planned extensions to neighboring countries Burundi, Rwanda, Uganda, and DRC. The goal is to establish Tanzania as a commercial hub in East Africa.
Significant Impacts of the Project:
- Lower transport costs: Reducing the cost per ton of goods transported between Dar es Salaam and DRC from $6,000 to $4,000.
- Faster transit times: By 2027, cargo transport time will drop from 30 days to just 30 hours.
With this railway modernization, Burundi and Tanzania reaffirm their commitment to regional economic integration and sustainable development through efficient and modern transport infrastructure.