Tanzania is determined to implement transport infrastructure megaprojects in a bid to become East Africa’s regional transport hub.
The country, which is investing massively in port, airport and railway projects, has earmarked $445.6-million in the current financial year Budget for the standard-gauge railway project connecting the country to landlocked Rwanda, Burundi and the Democratic Republic of Congo (DRC).
Tanzania’s President John Pombe Magufuli says the $7.6-billion railway project will get off the ground in the coming months. This follows the finalisation of agreements with financiers and the contractor.
Covering a distance of 2 561 km, the railway network will stretch from Dar es Salaam, the Tanzanian capital to Isaka, in the north of the country, and on to Kigali, in Rwanda, with a link to Burundi running from Keza to Musongati through Gitega. Another line will be constructed from Mpanda to Lake Tanganyika to link Tanzania with the eastern part of the DRC.
“It’s our belief that the project will revolutionise the economy of the country and that of the entire East and Central African region. That is why we have no time to waste because we want to start the project immediately,” says Magufuli.
The project has been accorded high priority within the East African Railway Master Plan. It is crucial, as it will boost regional trade by reducing the cost of transport, a major factor in making the region uncompetitive. World Bank data show that it costs importers an average of $4 990 to import a 20 ft container, while the sub- Saharan average is $2 504.
The project is also expected to help unlock the huge economic potential of the East Africa region, where huge deposits of oil and gas have been discovered and there has been a surge in mining activity.
A consortium of Chinese companies led by China Railway Materials was last year awarded the contract to build the railway line. The consortium will provide 10% of the funding for the project, while financial adviser Rothschild is finalising procedures for the financing of the project through banks.
In efforts to become a regional transport hub, Tanzania plans to invest $14.2-billion to construct a new rail network in the next five years.
The railway project will compete with Kenya, which is also implementing a standard- gauge railway project from the coast town of Mombasa through Kampala, in Uganda, and onwards to Kigali, in Rwanda.