PUBLISHED ON November 17th, 2014

Tanzania, Burundi plan SGR project

Tanzania’s government is seeking at least $600 million from private investors for the construction of a standard gauge railway line from Uvinza, Kigoma in western Tanzania to Musongati in Burundi.

The development comes after Burundi announced last month that it will start exporting between 1.5 million and 3 million tonnes’ worth of nickel per year in the next two years.

Burundi has discovered about 10 million tonnes of nickel deposits.

Shaaban Mwinjaka, Permanent Secretary in the Ministry of Transport, said the planned railway, which will have an estimated operating route of 200km, will help transport the chemical, adding that the two countries had already signed a deal.

“We are in talks with the Burundi government for a preliminary study for the railway line. We are looking for investors,” the PS said.

Big Results Now

He added that the new railway line would effectively lower the cost of imported goods in the region.

The project falls under the Big Results Now (BRN) initiative modelled on the Malaysian development strategy.

Mr Mwinjaka said Tanzania was also planning to upgrade the Kigoma port to cater for the anticipated increase in cargo traffic.

“We expect to achieve sustainable socio-economic development and integration by unlocking the underdeveloped potential in Tanzania and Burundi,” he said.

He said the government was planning to develop the Kabanga and Dutwa nickel mines in Tanzania.

Transit cargo between Tanzania and Burundi is expected to increase to at least 12.8 million tonnes by 2030. Mr Mwinjaka said the government is seeking to public-private partnerships to develop infrastructure projects such as ports, roads and railways.

Source: The East African

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.