Burundi and Tanzania have struck a bilateral deal of constructing a 282-kilometre Standard Gauge Railway (SGR). The project will start from Uvinza in Kigoma region of Tanzania to Gitega in Burundi. The project will cover 156km of the SGR in Tanzania and 126km of the SGR in Burundi.
Recently, the two countries began the process of seeking funds for the realisation of the project which is estimated to be in the region of $900 million. The project is to be jointly financed by both countries.
While talking about the agreement, Tanzania’s Minister of Finance and planning, Mwigulu Nchemba said: “Today, Prof Makame Mbarawa and I, we signed a bilateral agreement with the government of Burundi to build a Standard Gauge Railway (SGR) from Uvinza, Tanzania, to Gitega, Burundi.”
“We have agreed with my counterpart, Minister of Finance in Burundi, to look for areas we can get funds to jointly finance the project.”
The SGR project is expected to serve as a link between landlocked neighbouring countries like Burundi, Uganda, Rwanda and the Democratic Republic of Congo (DRC) to Dar es Salaam Port.
Also, the project will reduce congestion on the road as well as cut down 40% of freight costs.