Railways

Tanzania is constructing a 2,800 km Standard Gauge Railway (SGR) at an estimated cost of USD 7 billion, designed to link the Port of Dar es Salaam with Mwanza on Lake Victoria and onward to Rwanda, Burundi, the DRC, and Uganda.

The railway sub-sector is the centerpiece of Tanzania's transport modernization program, anchored by the Standard Gauge Railway (SGR) and complementing the country's legacy Meter Gauge Railway (MGR) network.

Construction of the SGR has been ongoing since 2017, with the first operational section from Dar es Salaam to Morogoro entering service in June 2024, followed by the extension to Dodoma.

Standard Gauge Railway (SGR) Overview

The SGR is one of Tanzania's most ambitious infrastructure projects, spanning 2,800 km at an estimated cost of USD 7 billion.

Construction has been ongoing since 2017.

The line uses electric locomotives capable of speeds up to 160 km/h, sharply reducing transit times compared to road freight.

Once fully completed, the SGR will link the Port of Dar es Salaam to Mwanza on Lake Victoria, providing a direct connection to Rwanda, Burundi, and the DRC.

The network is also designed to extend service to Uganda, reinforcing Tanzania's role as a regional trade and transport corridor.

Construction Progress and Operational Phases

The first section of the SGR, from Dar es Salaam to Morogoro, officially commenced operations in June 2024.

The subsequent phase from Dar es Salaam to Dodoma is already operational.

Additional phases remain under construction, progressively extending the corridor toward Mwanza and the western borders.

The phased rollout is already generating measurable transport activity, with cargo tonnage and passenger volumes on the SGR contributing to sector growth in 2025.

Contribution to Transport Sector Performance

The transport sector was estimated at approximately TZS 12 trillion in 2024, contributing 7.6% to the country's GDP in the first nine months of 2025^[1].

The sector displayed a growth rate of 5.2% compared to the same period in 2024^[1].

This expansion was attributed to an increase in cargo tonnage and the number of passengers transported by road and by the SGR railway, which commenced operations in June 2024.

Railways therefore stand out as one of the direct drivers of transport-sector growth in the current cycle.

Role in GDP Growth and Macroeconomic Outlook

The Bank of Tanzania (BOT) estimates that GDP in Mainland Tanzania grew by 5.5% in 2024 and by 5.9% in 2025.

BOT projects GDP growth in the second half of 2025/26 to accelerate to more than 6%^[2], driven primarily by public investment in infrastructure such as railways, roads, sports facilities, and airports.

Fitch expects Tanzania's real GDP growth to remain strong at 6% in 2026 and 2027, supported by strong infrastructure investment in flagship projects such as the SGR railway and the EACOP pipeline.

Railways are thus explicitly cited by BOT, Fitch, and multilateral lenders as a structural growth driver for the Tanzanian economy.

Regional Trade and Corridor Integration

The SGR is designed to connect the Port of Dar es Salaam with the interior and onward to Rwanda, Burundi, DRC, and Uganda.

Once completed, the network will strengthen Tanzania's position as a regional trade and transport hub by providing a faster, lower-cost alternative to road freight.

This is particularly significant given that road transport currently carries over 90% of passengers and over 75% of freight traffic in Tanzania^[4], indicating a substantial modal shift opportunity for rail.

By linking the Indian Ocean seaboard to landlocked neighbors including Uganda, Burundi, Rwanda, the DRC, Zambia, and Malawi, the railway network positions Tanzania as a gateway for international trade across East and Central Africa.

Policy Framework

The Tanzanian transport sector, which comprises surface transport (roads and railways), inland waterways (lakes and rivers), air transport, and sea transport, is governed by the Ministry of Works, the Ministry of Transport, and the Minister of Communication and Information Technology.

Railways are explicitly identified as a pillar of the Government's Infrastructure and Digital Transformation agenda, which prioritizes investment in integrated transport systems (railways, ports, airports, and roads).

The National Public-Private Partnership (PPP) Policy^[3] provides a framework for attracting private investment in infrastructure development, combining public oversight with private sector efficiency, technology, and capital.

Under PPP arrangements, private entities may renovate, construct, operate, maintain, or manage a facility in whole or in part, opening a route for private engagement in rail assets and services.

Investment Opportunities

The ongoing extension of the 2,800 km SGR beyond Dodoma toward Mwanza, Rwanda, Burundi, and the DRC creates opportunities in civil works, electrification, signaling systems, and rolling stock supply.

Adjacent logistics and intermodal facilities linked to the railway corridor, including dry ports, freight terminals, and warehousing, represent complementary investment channels as cargo volumes shift from road to rail.

Passenger services on operational sections, benefiting from electric locomotives capable of 160 km/h, offer opportunities in station retail, ticketing technology, and ancillary passenger services.

Public-Private Partnership frameworks provide a structured entry point for private capital into construction, operation, and maintenance of railway assets, aligned with the Government's strategic priority on integrated transport systems.

The SGR's role as the backbone of the Dar es Salaam corridor also creates upstream opportunities for suppliers in construction materials, specialized engineering, and rail-linked industrial parks along the alignment.

Last Update: May 2026

References

1. https://www.bot.go.tz/Publications/Regular/Quarterly%20statistical%20Bulletin/en/2026022607540099.pdf (Guide reference #46)
2. https://www.bot.go.tz/Publications/Regular/Monetary%20Policy%20Statement/en/2026020710260034.pdf (Guide reference #47)
3. https://ppp.worldbank.org/sites/default/files/2024-07/Tanzania_PPP%20Policy.pdf (Guide reference #75)
4. https://openjicareport.jica.go.jp/pdf/12150512_02.pdf (Guide reference #187)