Tanzania to boost intra-Africa trade with SGR expansion

Dar es Salaam. President Samia Suluhu Hassan said on Thursday, August 1, 2024 that her government was committed to enhancing intra-Africa trade through the expansion of the Standard Gauge Railway (SGR) network.

Speaking during the inauguration of the SGR electric train service between Dar es Salaam and Dodoma, President Hassan outlined plans to connect Tanzania's SGR infrastructure with neighboring Burundi and the Democratic Republic of Congo (DRC).

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

She emphasized that her administration is prioritizing 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 neighboring 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.

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.

Tanzania Railways Corporation (TRC) Director General Masanja Kadogosa 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.