Tanzania to Spend 7 Billion USD on Railway Expansion

In an effort to expand and expedite economic growth, Tanzania will invest 7 billion USD in two new railway lines that will connect towns in the country’s Northern Zone and towns in the Southern Zone.

Tanzania Minister for Transport, Dr Harrison Mwakyembe, confirmed last week in a meeting with transport stakeholders that the Northern line will cost about 3 billion USD, the Southern will cost about 3.6 Billion USD, and the remaining funds will be used on upgrades to the Central lines.

The lines will cross through all areas of economic viability in the North and South, easing trade in the country and increasing cargo-handling capacity in Tanga, home to Tanzania’s second largest seaport.

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In related news, the Tanzania Zambia Railway Authority (TAZARA) announced last week that they received six new, diesel/electric, cargo locomotives and they aim to increase annual cargo capacity from the current 600,000 tonnes to five million tons over the next few years.

Want to know more about Transport in Tanzania? Our free overview of the Tanzania Business and Investment Guide 2026 covers Transport, plus key sectors and investment opportunities. The complete 141-page edition includes policies, taxation, key regulations, full macroeconomic data, and sources, and is also available at no cost upon completion of a short form.

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