China’s Export-Import Bank (Exim) has sanctioned $7.6 billion loan to Tanzania as a fund for constructing railway link that would connect Burundi, Rwanda and Democratic Republic of Congo.
President John Magufuli announced the funding after securing loan following a meet with Exim Bank’s president Liu Liang, who said to be providing technical support to the country. He didn’t provide any detail about the loan but alluded to the preferential deal.
Chinese Exim is financing the 532km natural gas pipeline too in the country for a $1.2 billion investment.
Tanzania is an exploration hotspot after discovery of oil and gas, but the country has suffered from under investment into the transport infrastructure sector.
Lately the country has also upgraded its port to position itself as a regional hub and attract more business from neighboring countries.
The country announced in 2015 to have awarded rail contracts including standard gauge rail project to a consortium of Chinese firms that is led by China Railway Materials (CRM).
The construction of rail infrastructure to start next year in July, said spokesman for Tanzania’s presidency Gerson Msigwa.
Transport Minister Samuel Sitta said port city of Dar es Salaam will be connected with the SGR through Rwanda and Burundi.
Sitta added, “We expect to have two offshoots: One of them to Mwanza, which will open up the lakeside port city and link it with Uganda, while the second one will link to the coal, iron ore and soda ash mining areas in the south.”
Meanwhile, Kenya too is constructing a rail network to connect the port with Mombasa and Nairobi.
