China has made a $2.2 billion take care of Tanzania

ARUSHA – The Tanzanian authorities has contracted a state-owned Chinese language firm to construct the ultimate part of the Tabora – Kigoma Commonplace Gauge Railway at a value of $2.2 billion.

President Samia Suluhu Hassan witnessed the signing of the development contract which can be accomplished in 2026.

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“I believe that once this new SGR is completed, Tanzania will be in a better position to leverage its strategic geographic positioning to facilitate cross-border trade,” President Hassan.

As soon as accomplished, the two,561 kilometer line will hyperlink the Indian Ocean port of Dar es Salaam to Mwanza on Lake Victoria, with attainable offshoots to Burundi, the Democratic Republic of Congo (DRC), Rwanda and Uganda.

So far, Tanzania’s funding in SGR and different transport sectors has reached $10.04 billion, together with the newest contract.
President Hassan “I know our critics blame us for taking out these loans, but they must understand that better infrastructure is the key to driving growth in our country and also making Tanzania competitive at the regional level.”

The Tabora-Kigoma SGR railway will scale back freight prices between the port of Dar es Salaam and the Democratic Republic of Congo from a minimal of US$6,000 per tonne to round US$4,000 as soon as absolutely operational.

On the identical time, the transport time would lower from 30 days by truck to 30 hours in 2027.

China is the most important investor in Africa, pumping billions of {dollars} into railways, ports and airports in return for securing oil and commodities reminiscent of copper and cobalt.

These infrastructure tasks are being constructed by massive loans issued by China, however Beijing has been criticized for lending an excessive amount of to poor international locations, with out fastidiously scrutinizing their capacity to repay.

Tanzania’s railway system has two present networks, one connecting the East African nation to Zambia and the opposite connecting it to Kenya and Uganda.

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