Tanzania's Rail Revolution: Multi-Trillion Investment Set to Transform Travel and Trade
Tanzania is making significant strides in its ambitious railway transformation program, allocating TSh 2.872 trillion for the 2026/27 financial year. The Standard Gauge Railway (SGR) has already demonstrated remarkable success, transporting over 5.5 million passengers since June 2024 and expanding to create a vital regional logistics hub across East and Central Africa.
Tanzania has allocated TSh 2.872 trillion to railway development in its 2026/27 budget, accelerating one of Africa’s most ambitious transport infrastructure projects. At the center of the plan is the Standard Gauge Railway (SGR), which has already carried more than 5.5 million passengers since passenger services began in 2024.
Rising demand has prompted additional daily services, with the railway generating TSh 169 billion in revenue and becoming a popular alternative to road transport.
The government is also expanding the SGR network beyond domestic routes. Ongoing construction will extend the railway from Dar es Salaam to Mwanza, while future links to Kigoma and Burundi will strengthen regional connectivity.
These projects are designed to connect the Port of Dar es Salaam with neighboring countries, including Burundi and the Democratic Republic of the Congo, positioning Tanzania as a major transport and logistics gateway in East and Central Africa.
Alongside the SGR expansion, Tanzania is investing heavily in the rehabilitation of the TAZARA and Meter Gauge Railway networks to improve cargo movement and passenger services. Authorities aim to complete the Dar es Salaam–Mwanza SGR route by 2028 and extend it to Kigoma by 2029.
With ambitious targets for passenger traffic and freight volumes, the railway program is expected to reshape regional travel, boost trade, and strengthen Tanzania’s role as a key economic hub over the next decade.