Banking & Finance

Burundi Breaks Ground on $2.1bn Tanzania Railway

Backed by AfDB and Chinese contractors, the six-year project aims to extend into eastern DRC by 2026. Burundi is positioning itself as a key player in regional transport networks.

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Burundi has begun construction of its first-ever $2.1bn railway to Tanzania. The project will connect the landlocked nation to global markets and cut transport costs.

Burundi launches its first SGR to Tanzania, boosting trade, cutting transport costs, and unlocking the nation’s mineral potential.

Burundi has officially broken ground on its first-ever railway, a $2.1 billion Standard Gauge Railway (SGR) that will link the landlocked nation to Tanzania and global markets via the Port of Dar es Salaam.

On Saturday, President Évariste Ndayishimiye and Tanzanian Prime Minister Kassim Majaliwa laid the foundation stone for the 282-kilometre line at Musongati, about 160 kilometres from Bujumbura. The project marks a historic moment for Burundi, which has relied entirely on roads for cross-border trade since independence.

The new line is part of the Central Corridor, a critical regional trade route linking Burundi, Rwanda, Uganda, and eastern Democratic Republic of Congo (DRC) to Tanzania’s coast.

“This railway will profoundly transform regional transport, reduce delays, and cut costs,” said Flory Okendju, Executive Secretary of the Central Corridor Transit Transport Facilitation Agency.


Unlocking Burundi’s Mining Potential

President Ndayishimiye highlighted that the railway is key to tapping Burundi’s vast mineral reserves, including nickel, iron, and platinum.

“When I approached mining companies for investment, they asked how we would evacuate millions of tons of ore. Today, we finally have an answer,” he declared.

Currently, Burundi spends about $36 million every month on transport costs due to its reliance on trucks. According to Prime Minister Nestor Ntahontuye, the SGR will significantly reduce these costs while boosting trade efficiency.


Backed by AfDB and China

The six-year project is financed by the African Development Bank (AfDB) and Tanzania’s CRDB Bank, with construction handled by two major Chinese contractors.

Feasibility studies are already underway for extensions into eastern DRC, potentially reaching Uvira and Kindu by 2026.

Once complete, the Central Corridor SGR will serve as a strategic alternative to Kenya’s Mombasa-Nairobi SGR, intensifying competition among East Africa’s main transport hubs.

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