Tanzania's SGR expansion to boost intra-Africa trade

In a live interview aboard the new electric train, President Hassan highlighted the continent’s infrastructure challenges, noting that poor connectivity impeded intra-Africa trade.

She emphasised that her administration is prioritising the extension of the SGR network to bridge the gap between East and West Africa via Burundi and the DRC.

“The disconnection within Africa's infrastructure—railways, roads, oceans, and aviation—restricts trade and forces us to rely heavily on foreign markets,” President Hassan said. “By connecting to the DRC, we aim to boost regional trade, allowing us to trade directly within Africa rather than exporting to distant markets.”

The President stressed that improved SGR connectivity would benefit various sectors. For instance, coffee growers and cassava producers could benefit from direct trade opportunities within Africa, circumventing international price pressures.

President Hassan also noted the strategic importance of linking Tanzania’s ports to landlocked neighbouring countries, facilitating the movement of cargo and fuel. She acknowledged that this shift might impact local lorry transportation but encouraged operators to explore opportunities in regions lacking railway infrastructure.

Drawing a parallel with the Air Tanzania Company Limited (ATCL), President Hassan described the SGR and ATCL as crucial components of a broader development strategy. “While initial profits may not be immediate, the focus is on the long-term economic benefits and development spillovers,” she said.

Read: How SGR express train could change lives as services set for launch

She also shared an interesting observation about tourism trends, revealing that visitors to Mikumi National Park are increasingly using the SGR service from Dar es Salaam to Morogoro before continuing by vehicle. This shift has led to fewer vehicles on Tanzanian roads, potentially reducing road accidents, although it may impact bus operators.

Speaking later in Dodoma, the Tanzania Railways Corporation Director General, Mr Masanja Kadogosa, said the government will spend a total of $10.53 billion (over Sh25 trillion) to build the SGR in its entirety, which has begun to operate between Dar es Salaam and Dodoma.

He said the Dar es Salaam-Morogoro-Dodoma routes have so far attracted an average of 7,000 passengers per day.

He said that some 722 km were done between Dar es Salaam and Makutupora in Singida Region.

“The construction of other sections is ongoing well, and soon we will start the procurement process for the Uvinza-Msongati section,” he said.

He expressed optimism about the future of the SGR electric trains. “We anticipate growing passenger numbers as people from cities like Mbeya, Arusha, Mwanza, and Iringa use the SGR to reach Dodoma and connect to their final destinations,” Kadogosa said.

As Tanzania pushes forward with its SGR expansion plans, the country aims to strengthen regional trade ties and stimulate economic growth across Africa.

 Analysts weigh in

Analysts say completing the project in its entirety would boost the transport sector of the country and act as a catalyst to the economy of Dar es Salaam port.

“SGR will be a catalyst for cargo transportation for the aforementioned countries because both are the largest cargo transit transporters from Dar es Salaam port to other African countries,” said a Dar es Salaam-based social and economic expert, Mr Oscar Mkude.

Connecting the project to the DRC via Burundi would also ensure that Tanzania repays the money it borrowed to build the project on time.

This is because the DRC, along with Zambia, account for the largest share of goods in transit that pass through Tanzania’s ports.

 “It means that the government will get its return on the construction costs within a short period, though that will depend on raising efficiency at the Dar es Salaam Port as well as reducing charges and issues related to taxes,” he said.

 A senior lecturer from the University of Dar es Salaam (UDSM), Dr Wilhelm Ngasamiaku, told The Citizen yesterday that the SGR was important for the economy of the country, especially when it starts transporting both passengers and cargo.

 “Therefore, once SGR is connected to Burundi and Congo DRC, it will boost cargo transportation, open the economy of the country, and open the economies of countries that are in the Great Lakes,” he said.

The head of the Department of Finance at the University of Dar es Salaam, Dr Tobias Swai, told The Citizen that it was a good thing that the SGR route would be connected to the DRC via Burundi.

“Dar es Salaam port serves many African countries that transport their cargo by road. The move will reduce the burden as it is cheaper to transport by rail than it is to transport by rail,” he said.

 Legacy projects

Meanwhile, President Hassan yesterday reaffirmed her commitment to all the projects initiated during the time that she was the Vice President, saying she was fully involved in their initial planning and execution.

Apart from the SGR, other legacy projects that were initiated when President Hassan was the Vice President include the Tanzanite Bridge in Dar es Salaam, the Julius Nyerere Hydropower Project (JNHPP), and the 3.2-kilometre Kigongo-Busisi Bridge, among others.

Speaking on the train while she was on her way to Dodoma yesterday, President Hassan said, having fully participated in the project ideation, she has full ownership of ventures commenced during the fifth phase government of her predecessor, John Magufuli.

“I’m therefore indebted to complete all the projects left by my predecessor, the late President Magufuli. I’m obliged to complete the project implementation before considering starting new ventures,” she said during the onboard interview.

“A government led by principles of good governance that talks about sustainable development cannot abandon such projects but rather it will carry them forward. The most important thing is that I was involved in the initial planning of the projects, so it did not give me a challenge to maintain their execution.

Sharing the project's status, President Hassan said the Tanzanite Bridge as well as the Kigongo-Busisi projects have been completed.

Furthermore, she said the JNHPP has successfully injected 705 megawatts of electricity into the national grid and that the Dar es Salaam-Dodoma SGR service has now been operational.

"SGR is a big project that does not need to be abandoned. I have just been informed that per day SGR transports 6,000 to 7,000 passengers,” she said.

“My prayer is to see the construction of the SGR route finally completed by connecting the infrastructure with the DR Congo via Burundi to support the Africa Continental Free Trade Area (AfCFTA), which is being implemented in Africa.

Kikwete lauds the initiative

Former President Jakaya Kikwete has lauded the initiative, commending President Samia for her commitment to completing the SGR project.

Dr Kikwete, who travelled on the new electric train from Dar es Salaam to Morogoro, praised the comfort and efficiency of the service, noting its significant reduction in travel hours compared to road travel.

“I am very pleased to have travelled on this new train. It’s very comfortable. I deliberately chose to travel by train to see the progress we have made,” Dr Kikwete remarked.

The efficient SGR service is anticipated to stimulate regional development by enhancing connectivity between economic hubs.

Improved transport infrastructure is expected to attract investment, facilitate trade, and provide a more reliable means of travel for passengers and freight alike.

The enhanced rail connectivity could spur tourism and support local economies along the rail corridor.

 The former Head of State also highlighted the broader economic benefits of the SGR, saying its high capacity for transporting goods and its potential to further boost economic activities, especially when the railway extends to Mwanza.

“The SGR and electric train services offer great benefits due to the shorter travel time, which facilitates various social and economic activities,” he said.

Detailing the project’s background, Mr Kikwete said it originated from a meeting of East African Heads of State held in Nairobi, Kenya, to replace the metre gauge with the modern standard gauge railways.

He said John Magufuli’s regime further improved the idea with the electrification of the railway and choosing Kwala Area in Kibaha District, Coast Region, as the area where a large Inland Container Depot (ICD) would be constructed to further decongest the city of Dar es Salaam from lorries.