East Africa launches $2.15B cross-border railway project to boost trade and cut costs

Construction has begun on East Africa’s first-ever cross-border standard gauge railway (SGR), a $2.15 billion project linking Uvinza in western Tanzania to Musongati in eastern Burundi.

The 240-kilometre electrified line, scheduled for completion by 2030, is expected to drastically reduce transport times and costs across the region. Tanzanian Prime Minister Kassim Majaliwa and Burundian President Évariste Ndayishimiye laid the foundation stone on Saturday (16 August), hailing the railway as a transformative step for regional integration. “Once completed, passengers will be able to travel from Musongati to Dar es Salaam in a single day. Currently, cargo trucks take up to 96 hours to reach Bujumbura from Dar es Salaam,” Majaliwa said, adding that the project will also open new investment avenues and connect people faster.

The project is led by China Railway Group Limited (CREC) and will be built to the 1,435 mm international standard gauge. Each train will carry up to 3,000 tonnes — 100 times more than typical road trucks — while slashing container shipping costs by nearly half. “Many asked how we would transport the minerals,” President Ndayishimiye said, noting that “this railway is the answer” to Burundi’s mineral export challenges. The country hopes to leverage the railway to unlock its vast nickel reserves and integrate further into global trade networks. Analysts say the SGR could reshape East Africa’s logistics, reinforce Tanzania’s role as a regional transit hub, and offer landlocked Burundi a crucial gateway to the Indian Ocean.

About Khalid Al Mouahidi 4840 Articles
Khalid Al Mouahidi : A binational from the US and Morocco, Khalid El Mouahidi has worked for several american companies in the Maghreb Region and is currently based in Casablanca, where he is doing consulting jobs for major international companies . Khalid writes analytical pieces about economic ties between the Maghreb and the Mena Region, where he has an extensive network