AfDB's $696m Funding for Burundi-Tanzania Rail Link

The African Development Bank (AfDB) has approved a $696 million loan to establish a 651km railway connecting Burundi and Tanzania.
Burundi-Tanzania Rail Link
Burundi-Tanzania Rail LinkImage Source: Tanzania InvestImage Source: Tanzania Invest

Synopsis:

The African Development Bank (AfDB) has approved a $696 million loan to establish a 651km railway connecting Burundi and Tanzania. Split into three segments, this rail project under Africa’s Central Corridor aims to enhance connectivity, with funds directed toward expanding Tanzania's railway network and providing grants to Burundi.

 

Article:

In a significant move, the African Development Bank (AfDB) has greenlit a $696 million loan to facilitate the creation of a 651km railway link between Burundi and Tanzania. This transformative initiative, part of Africa’s Central Corridor development strategy, will encompass three distinct segments to foster regional connectivity and bolster transportation infrastructure.

The proposed railway will be constructed in three segments: a 411km stretch connecting Tabora to Kigoma, a 156km segment between Uvinza and Malagarasi in Tanzania, and an 84km section linking Malagarasi to Musongati in Burundi. These advancements aim to streamline travel and cargo movement between the two nations.

This project emphasizes the construction of a standard gauge railway, integrating it into Tanzania's existing network. The allocated $696 million includes $598 million in loans and guarantees to Tanzania and $98 million in grants specifically designated for Burundi.

Previously, approximately 400km of rail had been established from Dar es Salaam to Dodoma as part of the Central Corridor initiative. Presently, the ongoing construction from Dodoma to Tabora signifies a continual commitment to bolstering regional connectivity.

 Conclusion:

The AfDB’s substantial financial commitment toward establishing the Burundi-Tanzania rail link underscores the institution's dedication to fostering regional integration and development. This transformative project, with its emphasis on enhancing transportation infrastructure, holds the potential to significantly elevate trade, commerce, and connectivity between Burundi and Tanzania.

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