Tanzania and Burundi Award $2B Contract to Chinese Firms to Design and Build Regional Rail

On 29 January 2025, Tanzania and Burundi announced that the contract to build a regional rail has been awarded to China Railway Engineering Construction Group (CREGG) and China Railway Design and Consulting Group (CRDCG). Tanzania Minister of Transport Makame Mbarawa witnessed the signing between Tanzania Railways Corporation (TRC) and the Chinese firms in Dar es Salaam.

The contract is worth USD 2.15 billion and is financed by a concessional loan from the African Development Bank (AfDB). The railway line is 282 km long and is based on standard gauge rail (#SGR). The itinerary comprises of Uvinza on the Tanzanian side and Musongati and Gitega on the Burundian sides.

“This is a very significant moment because it marks the first foray of the AfDB in the financing of Tanzania’s railway projects.”

Tanzania Finance Minister Mwigula Nchemba

The railway is poised to play a central role in cross-border trade and regional economic integration. In particular, analysts point out that the new rail will link up the #nickel mine in Musongati, Burundi, to the seaport of Dar es Salaam, Tanzania.

Nickel is one of the #CriticalMinerals necessary for the production of rechargeable batteries for Electric Vehicles (#EV) and the #GreenEconomy in general. It is estimated that some 3 million tonnes of minerals will be transported from the mine to the port annually.

The segment of the rail forms part of the East Africa Central Corridor linking Tanzania with its landlocked neighbors of Burundi, Rwanda, and eventually the Democratic Republic of Congo.