Browsing: SGR

Tanzania railway
  • New investment in Tanzania’s railways sector is expected to directly benefit nearly 900,000 people and indirectly impact an estimated 3.5 million.
  • Tanzania operates two railway systems, totaling 3,682 km in length.

 

Tanzania railway sector is poised for immense growth as the World Bank poured significant funding by approving $200 million in financing from the International Development Association (IDA) which is a part of the bank.

 

According to available information from the World Bank statement made on Friday, the bank said the financing for the second phase of the Tanzania Intermodal and Rail Development Project (TIRP-2) will improve safety, climate resilience, and operational efficiency along this railway segment.

 

Read also: AfDB approves $696.4M financing for Tanzania-Burundi-DRC railway project

Tanzania railway plan anchored on Dar- Morogoro SGR

The funding comes a few weeks after Tanzania Railways Corporation (TRC) began its inaugural trial journey of the electric Standard Gauge Railway (SGR) train

A railway track. Africa’s railways infrastructure will be a key contributor to the success of the AfCFTA. www.theexchange.africa

The promise of industrialization in East Africa has been on an exponential growth trajectory, remarkably transforming the economies of all the thirteen nations in the region.

The root of this massive developmental shift has been the strategic partnerships that countries across the region have engaged in with developed countries, pertinently in Asia. This is well attuned to Africa’s Agenda 2063 on the ‘Africa we want’ set by the African Union (AU), which advocates under its first aspiration, a ‘Prosperous Africa based on inclusive growth and sustainable development’ and ‘A Strong, United, Resilient and Influential Global Player and Partner’ under aspiration 7.

Towards the fruition of both aspirations, countries in East Africa have been forging transformative partnerships aligned to their specific national development goals strengthening trade and bilateral ties with Asian allies largely China, Japan, Turkey, Indonesia and India.

However, China has spearheaded this much-needed development, which continues to pump resources …

TPA2

Tanzania railway investment

Tanzania Railway Investment

In the most recent development, an additional 282km of the railway are been constructed to connect Tanzania and Burundi giving the latter access to East Africa’s biggest and busiest port.

The construction is an extension of the already laid down Standard Gauge Railway (SGR) in Tanzania. The two governments have signed an agreement that paves way for new rail to be laid at a sum of US$900 million.

What does this extension mean for Burundi and how will it benefit Tanzania?  

Apart from the obvious economic benefits, lets first consider the small towns through which the railway snakes. From Tanzania’s little town of Uvinza in Kigoma region to the bustling capital city of Gitega in Burundi, the railway is expected to spark life, rejuvenate slowed businesses and build new people relations.

None said it better than Burundian Minister for Finance, Budget and Economic Planning Domitien Ndihokubwayo who

PaddyTanzaniaLMICArticle Source KenyaTalk

The year 2020 had a lot of events across the development aisle, and Tanzania’s economic upgrade from low to lower-middle-income status by the World Bank (WB), is worth noting as one of the success stories.

There have been a number of forecasts on the economy of Africa and Tanzania at large, with a variety of predictions which point at different directions.

On June 11 2020, the Tanzanian government confidently, via the Ministry of Finance and Planning stated that the nation’s economy is expected to grow at a rate of 5.4 per cent in 2020 compared to earlier estimates of 6.9 per cent.…

Ibadan Standard Gauge Railway construction undertaken by the Chinese -The Exchange

Across the continent to West Africa where we find one of Africa’s largest economies, Nigeria. Here we find another railway deal gone bad, the $500 million Lagos – Ibadan railway.

In a similar manner to Kenya’s SGR debacle with China, which resulted in Kenya sinking heavily into debt that it simply cannot afford to pay and restructure, Nigeria is now finding a similar fate.

According to the country’s Director General for Nigeria’s Debt Management Office (DMO) Patience Oniha, when making a deal with China, ‘…the Chinese determine the cost of projects, give us loans tied to the projects and the projects must be executed by Chinese firms alone.’

It is alleged that not only does China force importation of even the smallest of laborers but also all the equipment and guess where they are imported from? Yes, China.

It is further argued that by so doing, China is using these …

kenya sgr

Kenya is facing the daunting task of paying China a piling amount that it owes for the Chinese funded multibillion dollar Standard Gauge Railway (SGR).

Only a short while ago, the National Treasury asked parliament to allow it some US$940 million dollars to make its latest installment to pay to China.

After millions of dollars have been dumped into the Kenyan ambitious SGR project, now Kenya wants China back on the discussion table to revisit the terms.   Sources say the amount covers interest and principal installments invested by the Chinese government and other entities including the Chinese Exim Bank and the China Development Bank.

It is no surprise that the Kenyan lawmakers want a sit-down with their Chinese counterparts to discuss the payment because the SGR is not making as much money as was projected.  The plan was for the railway to carry goods from Mombasa port into landlocked Africa. …

train

Phase one of Tanzania’s Stand Gauge Railway (SGR) that extends from Dar es Salaam to Morogoro is almost complete.

The railway which covers over 300 kilometres is almost complete and the country is now getting ready to buy the trains that will run on the track.

Even though its first phase is not entirely complete due to the ongoing heavy rains that have stalled construction work, the country is ready to move on and buy and test the trains.

Unofficial reports say the government of Tanzania has started bidding for trains and is actually in the process of finalising procurement of at least two locomotives already. That’s not all, the required trains should have at least eight compartments for passengers and same number of wagons for cargo transportation.

Already the testing of trains has started, a senior official of the Tanzania Railway Corporation (TRC) intimated. It is expected that the …

President Kenyatta dismisses port grab as mere propaganda noting that Kenya was already way ahead in servicing its debts to China

Every month, Kenya’s Standard Gauge Railway moves an average of 200 cargo trains from the coastal city of Mombasa to Nairobi’s inland container depot. With it, it moves at least 1,000 containers to Nairobi. This has left a bitter taste among residents of Mombasa, who have over the years depended on the undertakings around the port for jobs.

SGR, which has been billed as the biggest transport infrastructure project in the Kenya’s history, is expected to haul about nine million tonnes of cargo to make a profit of Sh5.08 billion a year, averaging Sh424 million per month, compared with 990,488 tonnes carried in the first year when SGR made a loss of Sh10 billion.

The SGR has so far made Sh10.9 billion from cargo and passenger business since it started operating, according to the Kenya National Bureau of Statistics’ economic indicators report released in December 2018.

The cracks on the …