Standard Chartered has arranged a $2.33 billion syndicated financing package for Tanzania’s Standard Gauge Railway (SGR), one of the largest infrastructure transactions in East African history.
The deal funds the construction of 679 kilometres of new track across three lots, moving Tanzania’s most transformative transport project significantly closer to completion.
How the $2.33 Billion Breaks Down
The financing covers two separate tranches across three lots of the SGR, each with distinct funding structures and construction partners.
| Tranche | Amount | Instrument | Route | Constructor |
|---|---|---|---|---|
| Lots 3 and 4 — ECA financing | USD 1.32 billion | Export Credit Agency facilities (signed 2025 and 2026) | Makutupora to Isaka (430 km) | Yapi Merkezi (Turkey) |
| Lots 3 and 4 — commercial and DFI financing | USD 462 million | Commercial banks and Development Finance Institutions (signed 2023) | Makutupora to Isaka (430 km) | Yapi Merkezi (Turkey) |
| Lot 5 — Sinosure facility | USD 559 million | Sinosure-covered facility (drawn 2025) | Isaka to Mwanza (249 km) | CCECC (China) |
For the ECA facilities covering Lots 3 and 4, three European export credit agencies fronted the financing: EKN and SEK from Sweden, KUKE from Poland, and SACE from Italy. Two additional ECAs provided reinsurance. Across every tranche, Standard Chartered served as Sole Global Coordinator, Bookrunner, Mandated Lead Arranger, Facility Agent and Lender for the Ministry of Finance of the United Republic of Tanzania.
What This Builds and Why It Matters
When complete, the SGR will link the port of Dar es Salaam to Mwanza on the southern shore of Lake Victoria, opening a direct, reliable corridor for both passengers and freight through the interior of Tanzania. The railway runs through Lots 1 through 5, covering the full 1,219 kilometres from Dar es Salaam to Mwanza. Tanzania Rail Corporation manages the project on behalf of the government.
This transaction builds on the USD 1.46 billion ECA facility that Standard Chartered arranged for Lots 1 and 2 in 2020, making the bank the lead financier across the entire Dar es Salaam to Mwanza corridor. The cumulative commitment now exceeds USD 3.79 billion.
Tanzania’s SGR ambition reaches further still. The full network spans a planned 2,561 kilometres and connects landlocked Rwanda, Burundi, Uganda and the Democratic Republic of Congo to Dar es Salaam, reshaping the economics of regional trade across East and Central Africa. Tanzania and Burundi signed a deal in 2022 to develop a 282-kilometre cross-border segment as part of this broader vision.
What the Financing Partners Said
Ciro Aquino, Head of Task Force Africa at SACE, said: “SACE is pleased to support Lots 3 and 4 of the Standard Gauge Railway, following its support for Lots 1 and 2 of the same project in Tanzania. This achievement reflects SACE’s strong commitment to strengthen and promote the Italian supply chain, positioning Italian companies as key partners in Africa’s connectivity and economic growth, the core objectives of the Mattei Plan.”
Ake Norlander, Director-General of EKN, said: “EKN was part of SGR Lots 1 and 2, a project that already provides a safer and more efficient alternative to road transport, and we are now also part of Lots 3 and 4. We are proud at EKN to facilitate Swedish exports that contribute to this important development.”
Janusz Władyczak, CEO of KUKE, said: “KUKE was highly committed to participating in this strategic project in Tanzania. This investment demonstrates the critical importance of international cooperation and leveraging the potential of financial institutions from various countries to deliver a meaningful, large-scale positive impact on people’s lives in Africa.”
Herman Kasekende, CEO and Head of Coverage at Standard Chartered Tanzania, said: “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.”
A Corridor That Reshapes Regional Trade
The SGR’s significance extends well beyond Tanzania’s borders. Once the full network operates, landlocked countries that currently move goods overland through difficult terrain will gain access to a port connection that cuts transit times and transport costs. For traders in Rwanda, Burundi, Uganda and the DRC, the railway represents infrastructure that directly affects the price of goods, the competitiveness of exports and the cost of doing business.
Standard Chartered’s role across all five lots — spanning six years of successive financing — positions the bank as the architect of the deal structure that made the corridor fundable. The next question is whether the remaining segments connecting Tanzania’s neighbours reach financial close on a similar timeline.
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