28 April 2026 | London, UK / Dar es Salaam, Tanzania — Standard Chartered has successfully arranged a syndicated financing package exceeding USD2.33 billion to support the continued development of Tanzania’s transformative Standard Gauge Railway (SGR) Tanzania.
The financing will fund the construction of Lot 3 and Lot 4 of the SGR—approximately 430 kilometres—linking Makutupora to Isaka, with works being executed by Yapi Merkezi. Meanwhile, Lot 5, covering 249 kilometres from Isaka to Mwanza, is being developed by China Civil Engineering Construction Corporation.
Once completed, the SGR (Lots 1–5) will connect Dar es Salaam to Mwanza, marking one of the largest infrastructure investments in Tanzania’s history.
Financing Structure and Strategic Partnerships
The financing for Lots 3 and 4 includes:
- USD1.32 billion in Export Credit Agency (ECA) financing signed between 2025 and 2026
- USD462 million in long-term funding from commercial banks and Development Finance Institutions (signed in 2023)
Standard Chartered played multiple key roles, including Sole Global Coordinator, Bookrunner, Mandated Lead Arranger, Facility Agent, and Lender, on behalf of the Ministry of Finance of Tanzania.
The ECA-backed facilities are supported by:
- EKN (Sweden)
- KUKE (Poland)
- SACE (Italy)
Additional reinsurance support was provided by two other ECAs.
For Lot 5, the financing includes a USD559 million facility covered by Sinosure, drawn in 2025, with Standard Chartered again serving in multiple lead roles.
Driving Economic Transformation and Regional Connectivity
The SGR project is a cornerstone of Tanzania’s long-term infrastructure strategy, spearheaded by the Tanzania Railways Corporation with strong backing from the government.
Once complete, the railway will:
- Link the Port of Dar es Salaam to key inland trade corridors
- Enhance connectivity to neighbouring countries in East and Central Africa
- Provide a faster, safer, and more reliable alternative to road transport
- Stimulate economic growth in Tanzania’s interior regions
- Create employment opportunities across construction and operations
The project is expected to significantly strengthen Tanzania’s position as a regional logistics and trade hub.
Building on a Strong Financing Track Record
This latest financing builds on Standard Chartered’s earlier role in arranging USD1.46 billion in ECA-backed funding for SGR Lots 1 and 2, signed in 2020—further demonstrating the bank’s long-term commitment to Tanzania’s infrastructure development.
Industry Perspectives
Ciro Aquino, Head of Task Force Africa at SACE, noted that the agency’s continued support reflects its commitment to strengthening international partnerships and advancing economic growth across Africa.
Åke Nordlander, Director-General at EKN, highlighted the project’s contribution to safer and more efficient transport while supporting Swedish exports.
Janusz Władyczak, CEO of KUKE, emphasized the importance of global financial cooperation in delivering impactful, large-scale infrastructure.
Meanwhile, Herman Kasekende, CEO and Head of Coverage at Standard Chartered Tanzania, stated:
“We are committed to helping finance large-scale infrastructure that supports sustainable growth in Africa. This railway project positions Tanzania as a premier logistics hub, boosting regional trade and job creation.”
A Catalyst for Tanzania’s Growth Ambitions
The successful structuring of this multi-billion-dollar financing underscores the growing confidence of international financial institutions in Tanzania’s economic trajectory.
As construction progresses, the SGR is poised to redefine the country’s transport landscape—unlocking new opportunities in trade, investment, and regional integration.
About Standard Chartered
Standard Chartered is a leading international banking group operating in 54 dynamic markets worldwide. The bank is listed on both the London and Hong Kong Stock Exchanges and is driven by its purpose to promote commerce and prosperity through diversity.
For more business, banking, and infrastructure insights, stay connected with the Kitomari Banking & Finance Blog.
.jpg)
No comments:
Post a Comment