DBSA refinancing SGR Tanzania

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The project involves the refinancing of an infrastructure project by the DBSA. As part of the Standard Gauge Railway Lot 2 project in Tanzania, the DBSA is using the funds from the development loan to build an electrified railway line (section 2) from Morogoro to Makutopora with the aim of shifting traffic volumes from road to rail. The financing requirement for the section of the line is around USD 1.7 billion in total. The DBSA was invited by the consortium leader Standard Chartered to participate in the financing of USD 100 million. Following an international tendering process, the construction contract was awarded to a Turkish construction company with extensive experience in building railway lines. This line is a core element of the East African Railway Master Plan and is intended to help strengthen the economic integration of the East African Community and shift traffic volumes from road to rail. The involvement of the DBSA is highly complementary to the commitment of the African financial institutions (Afrexim Bank, TDB and Standard Chartered) also involved in the beneficiary project. The beneficiary project contributes both to poverty reduction (positive employment effect) and to environmental protection (reduction of pollutants in road traffic). However, its greatest positive effect is through the improvement of the investment framework conditions. The more efficient connection between Dar es Salaam (as a gateway to world trade) and the hinterland and neighboring countries can support their economic development and contribute to improving living conditions there. The beneficiary project thus contributes to SDG 8 (sustainable economic growth) and SDG 13 (climate protection). At the same time, the beneficiary project fits in with the priorities of the Marshall Plan with Africa through the better integration of African countries into world trade.