The African Development Bank (AfDB) has signed a coordination agreement with Deutsche Bank and Société Générale to lead the mobilization of US$ 1.2 billion for Tanzania’s Standard Gauge Railway (SGR) project.
AfDB signed the agreement with Co-Mandated Lead Arrangers Deutsche Bank and Société Générale during the African Investment Forum’s 2024 Market Days in Rabat, Morocco.
Max Ndiaye, Senior Director for Syndications, Cofinancing, and the Africa Investment Forum at AfDB, emphasized the significance of the agreement, saying, “This collaboration marks a significant step in mobilizing the required financing to transform Tanzania’s infrastructure and enhance regional connectivity.”
Deutsche Bank’s Managing Director for Africa, Myriam Ouazzani, expressed the bank’s commitment, stating, “We are proud to support this project, which aligns with our goal of advancing economic growth and development across Africa.”
Société Générale’s Head of DFI Solutions, Development and Structured Export Finance, Randolph Fotso, added, “This partnership demonstrates the potential of international collaboration to deliver transformative projects in Africa.”
The financing will be arranged in two tranches, with AfDB coordinating the second tranche alongside development finance institutions, Export Credit Agencies, bilateral lenders, and multilateral development banks.
Tanzania’s SGR
Tanzania’s Standard Gauge Railway is a flagship infrastructure project designed to boost trade, facilitate regional integration, and create new economic corridors for mining and agriculture in the region.
The US$ 2.3 billion project will link Tanzania’s port of Dar es Salaam to Mwanza on Lake Victoria, creating vital connections to Rwanda, Burundi, Uganda, and the Democratic Republic of Congo. This expansion aims to unlock economic opportunities and foster regional trade across Eastern and Central Africa.
