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Tanzania Allocates TSh 2.8 Trillion for Railways as SGR Reshapes Regional Travel Tanzania Allocates TSh 2.8 Trillion for Railways as SGR Reshapes Regional Travel

Tanzania is executing one of Africa's most ambitious railway transformation programmes, with the Ministry of Transport allocating TSh 2.872 trillion for the 2026/27 financial year to accelerate construction, rehabilitation and modernization across multiple rail networks. For travel professionals operating within East and Central African markets, this massive infrastructure investment signals fundamental changes to how passengers and cargo will move through one of the continent's most strategically positioned nations.

The centrepiece of this effort remains the Standard Gauge Railway, which has already demonstrated its capacity to transform domestic travel patterns. Since passenger services commenced in June 2024, the SGR has carried more than 5.5 million passengers between Dar es Salaam and Dodoma. Between July 2025 and March 2026 alone, over 2.5 million travelers used the service, representing a remarkable 22 percent increase compared to the same period in the previous year. These figures translate to approximately 9,300 daily passengers, equivalent to removing 170 large buses from Tanzanian roads each day.

The quality and reliability of SGR services have clearly resonated with the traveling public. To meet growing demand, Tanzania Railways Corporation added two additional daily services between Dar es Salaam and Morogoro from April 2026, increasing connections from four to six departures daily. Revenue performance reflects this popularity, with TSh 169 billion collected since operations began and TSh 83 billion generated during the current financial year alone.

For the African travel trade, these developments present compelling opportunities to incorporate rail journeys into client itineraries. The SGR offers a distinctly different travel experience compared to road transport, with modern carriages, comfortable seating, and scenic views of the Tanzanian landscape at speeds that dramatically reduce journey times. Tour operators packaging multi-destination experiences can now position rail travel as both a practical transport solution and an attraction in its own right.

The network continues expanding toward completion of its full design scope. The first phase covering 1,219 kilometres from Dar es Salaam to Mwanza is progressing steadily, while the second phase will add another 1,590 kilometres including routes to Kigoma and onward to Burundi. A recently secured concessional loan of US\$1.277 billion will fund continued construction of the Makutupora-Tabora and Tabora-Isaka sections, addressing implementation challenges that had previously slowed progress.

Perhaps most significant for regional travel connectivity, Tanzania is positioning its SGR as a trade and transport platform extending into neighboring countries. Construction of the Tabora-Kigoma section covering 506 kilometres and the Uvinza-Musongati line reaching 300 kilometres into Burundi will eventually connect the Port of Dar es Salaam with Burundi and the Democratic Republic of Congo. This regional dimension transforms Tanzania from a single-country destination into a potential gateway for multi-nation African journeys.

The rehabilitation of the Tanzania-Zambia Railway Authority network adds another dimension to this connectivity story. Following the signing of a concession agreement with Chinese contractor CCECC in September 2025, an investment of US\$1.4 billion is expected to revitalize this historic corridor. The project aims to increase cargo capacity from current levels of less than 150,000 tonnes annually to 2.4 million tonnes, while generating an estimated 100,000 direct and indirect jobs.

The existing Meter Gauge Railway is simultaneously undergoing rehabilitation to improve resilience and capacity. Replacement of lighter 45-pound rails with heavier 80-pound alternatives and bridge strengthening to handle increased axle loads will ensure the legacy network remains operational while SGR expansion continues. Connection points being constructed at Ruvu and Bahi will enable cargo and passenger transfers between the old and new systems.

Looking ahead, TRC has set ambitious targets for the 2026/27 financial year, including transporting 4.75 million SGR passengers and 1.5 million tonnes of cargo. The government's strategy envisions completing the SGR from Dar es Salaam to Mwanza by end of 2028 and to Kigoma by 2029. By the 2034/35 financial year, the combined rail network is projected to move 10 million tonnes annually on the SGR and 4 million tonnes on the MGR.

For forward-thinking travel businesses across sub-Saharan Africa, Tanzania's railway programme represents more than infrastructure development. It signals the emergence of a rail-connected regional logistics hub that could fundamentally alter how tourists and business travelers move through East, Central and Southern African markets in the coming decade.