The African Development Bank Group has established a syndication strategy for the extension of the electrified Standard Gauge Railway that will connect Tanzania to Burundi and the Democratic Republic of Congo.
AfDB is mobilizing USD 1.2 billion in conjunction with Deutsche Bank, Société Générale, and other partners for the 651 kilometers’ multi-state railway project, according to the President of the African Development Bank Group Dr Akinwumi Adesina.
Initial disbursement from the African Development Fund and partner, the OPEC Fund, is expected by July 2025.
The project financing, signed during the 2024 Africa Investment Forum Market Days and includes more than USD 85 million from the Bank’s concessional financing window, the African Development Fund, a mix of Partial Credit Guarantees totaling USD 994.3 million across some sections of the railway, complemented by USD 247 million from the Government of Tanzania in counterpart financing.
“This railway line is a cornerstone of East Africa’s regional integration vision, aimed at delivering a modern, cost-effective, and high-capacity transport system anchored on the port of Dar es Salaam and linking landlocked nations,” Adesina said.
“Our shift from traditional road systems to integrated transport solutions is helping position Tanzania as a key logistics and trade hub in the region,” he added.
The African Development Bank Group has so far invested over USD 9 billion in Tanzania since it started its operations in the country in 1971.
The Total financial support over the last 10 years stands at USD 4.73 billion, equivalent to 53 Percent of the Bank’s lending to Tanzania over the past 54 years.
Tanzania, therefore, has honored the President of the African Development Bank Group Dr Akinwumi Adesina who led the institution for the last decade describing him as a tireless son of Africa who has dedicated his life to transform the narrative of the continent.”
During a two-day visit to Tanzania the Bank president Dr Akinwumi Adesina was invited on a tour of some of the Bank-financed infrastructure projects that included a new international airport and a major highway that encircles the administrative capital of Dodoma.
The President of Tanzania, Samia Suluhu highlighted projects in other sectors, such as agriculture and energy, that are financed by the Bank.
“This is in addition to the construction of a modern Standard Gauge Railway line that will link Tanzania to Burundi and the Democratic Republic of Congo,” she said.
President Suluhu Hassan announced, “I have accepted a recommendation by the Ministry of Works to rename the Dodoma Outer Ring Road as the Dr Akinwumi Adesina Road.”
The newly named 112-kilometer dual carriageway is a strategic link in the Cape to Cairo continental corridor. It will decongest Tanzania’s fast-growing administrative capital and enhance regional connectivity.
AfDB provided USD 138 million in funding for the project, with an additional USD 42 million from the Africa Growing Together Fund and USD 34.69 million from the Government of Tanzania.
During his visit to Tanzania, bank President, Adesina was awarded a Doctor of Science Honorary Degree (Honoris Causa) from the University of Dar es Salaam.
The citation highlighted Adesina’s leadership and “lifelong dedication to public service, evidence-based policymaking, and pan-African progress.”
“Dr Adesina exemplifies the rare blend of academic brilliance, visionary leadership, and practical impact that honorary doctorates are meant to recognize. His emphasis on inclusive growth, innovation, and economic resilience makes him a beacon of integrity, excellence, and servant leadership.”
The honorary degree was bestowed on Adesina by the Chancellor of the University and former President Jakaya Mrisho Kikwete, who said, “I would like to tell Tanzanians, the African Development Bank has been a major anchor of Tanzania’s development sector. When it comes to infrastructure, no institution comes close to the African Development Bank.”
From Dar es Salaam, Adesina, accompanied by former President Kikwete and Finance Minister Mwigulu Nchemba, took the Standard Gauge Railway train for the three-hour, 450-kilometre journey to Dodoma.
Accompanied by Adesina, President Suluhu Hassan travelled across more than 30 kilometers of the Dodoma Outer Ring Road, stopping along the way at the Bank-funded Msalato International Airport which is expected to be completed by the end of 2026.
The state-of-the-art airport features a 3.6-kilometre landing strip—one of the longest in East Africa, with a capacity to accommodate Airbus A380 aircraft.
The African Development Bank has provided over USD 198 million to finance the Msalato International Airport project with USD 23 million coming from the African Development Fund and USD 50 million from the African Grow Together Fund.