Standard Chartered has successfully coordinated a syndicated financing package exceeding USD 2.33 billion to support the continued development of Tanzania’s Standard Gauge Railway (SGR) project. This financial injection is designated for the construction and modernization of key sections of the rail network, which is one of the largest infrastructure initiatives in the history of the United Republic of Tanzania. This USD 2.33 Billion deal builds upon a previous USD 1.46 billion financing package arranged by the bank for Lots 1 and 2 in 2020.
The total funding package is structured to support different segments of the railway line:
- Lots 3 and 4 (Makutupora to Isaka): This section received a total of USD 1.782 billion. This includes USD 1.32 billion in Export Credit Agency (ECA) financing signed between 2025 and 2026, and USD 462 million in long-term financing from commercial banks and Development Finance Institutions (DFIs) initiated in 2023.
- Lot 5 (Isaka to Mwanza): A USD 559 million facility, covered by Sinosure (the Export Credit Agency of China), was drawn in 2025 to support this 249-kilometer stretch.
Standard Chartered acts as the sole global coordinator, bookrunner, and mandated lead Arranger for the Ministry of Finance of Tanzania across these facilities.
Standard Chartered Key Partners and Contractors
The SGR project involves a high degree of international cooperation among various Export Credit Agencies. The Export Credit Agencies facilities for Lots 3 and 4 were supported by EKN and SEK of Sweden, KUKE of Poland, and SACE of Italy, which served as fronting ECAs with additional reinsurance from two other agencies.
The construction of Lots 3 and 4, spanning approximately 430 kilometers, is being undertaken by the Turkish firm Yapi Merkezi. Meanwhile, the China Civil Engineering Construction Corporation is delivering Lot 5.
The SGR project aims to connect the Port of Dar es Salaam to vital growth corridors in Western Tanzania and neighboring landlocked states. Once complete, the rail network (Lots 1 to 5) will provide a reliable, high-capacity mode of transportation for both people and cargo, significantly reducing freight costs.
Herman Kasekende, CEO & Head of Coverage at Standard Chartered, Tanzania stated: “We are committed to helping finance the delivery of large-scale infrastructure to support sustainable growth in Africa, and we are excited for this railway project to position Tanzania as a premier logistics hub, boosting regional trade and job creation. At Standard Chartered, together with our partners, we are proud to use our unique network and capabilities to support global investment opportunities in Tanzania.”
Tanzania expects to see a 40% decrease in freight costs and a significant reduction in road congestion. Each freight train on the new line is projected to transport up to 10,000 tonnes, the equivalent of 500 lorry loads.
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