Standard Chartered Plc has arranged a $2.2 billion loan with export credit agencies for Tanzania SGR project by Yapi Merkezi. This is according to Turkish contractor Yapi Merkezi Insaat VE Sanayi AS. The deal will be signed April 28 in the East African nation’s capital, Dodoma, and will finance the third and fourth legs of the 1,219-kilometer (757-mile) track, Yapi Merkezi Vice Chairman Erdem Arıoğlu told Bloomberg in an interview.
The two phases run through Makutupora, Tabora and Isaka. The funding comes after Tanzania also held talks with Standard Chartered for a loan in Washington D.C. The meeting, hosted at the Tanzanian Embassy on the sidelines of the 2026 IMF/World Bank Spring Meetings. It was led by Zanzibar Minister of State for Finance and Planning Dr. Juma Malik Akil on behalf of Finance Minister Khamis Mussa Omar.
Outlook on the Tanzania SGR Project by Yapi Merkezi
The successfulness of the current loan places Standard Chartered as lead financier on the Tanzania SGR project by Yapi Merkezi. Reports in 2024 that the first completed 541-km section between Dar es Salaam and Dodoma cost $3.1bn.
Moreover, the government said a $1.46bn loan from Standard Chartered helped fund part of that stretch. The $2.2bn loan will be fundamental in facilitating the remaining stretch of rail to be completed. Tanzania Railways Corporation says the planned Standard Gauge Railway network will span about 2,561 kilometres. It links the port of Dar es Salaam with inland commercial centres and neighbouring countries. Other East African nations such as Kenya are also working on their SGR as it seeks to electrify its rail to connect with Uganda.
These include including Rwanda, Burundi and also the Democratic Republic of Congo. The Turkish firm has been fundamental in the delivery of the nation’s SGR in many aspects. These include the construction of multiple phases (Lots 1–4) covering over 1,000 km, designed for speeds of
Lot 1 & 2: Dar es Salaam to Makutupora.
Lot 3 & 4: Makutupora to Tabora and Tabora to Isaka.
In addition to the railway track, the scope includes 3 stations, maintenance workshops, a depot area, a Railway Institute, electrification, signaling, and telecommunication systems.
Project Factsheet:
Project Name: Tanzania Standard Gauge Railway (SGR) Project
Location: Tanzania
Estimated Investment Value: $2.2 Billion loan package (latest financing)
Project Type: National railway infrastructure
Timeline
2024: First 541 km Dar es Salaam–Dodoma section reported completed
April 28, 2026: $2.2 billion loan signing scheduled in Dodoma
2026 onward: Financing to support Lots 3 and 4 construction
Site & Scale
Current Main Corridor: 1,219 km
Planned Full Network: ~2,561 km
Latest Financed Sections: Makutupora – Tabora – Isaka
Regional Links: Rwanda, Burundi, DR Congo connections via inland corridors
Project Teams
Contractor: Yapi Merkezi
Lead Financier: Standard Chartered
Owner: Tanzania Railways Corporation
Supporting Lenders: Export credit agencies and development finance institutions
Infrastructure Scope
Standard gauge electrified railway corridor
Passenger and freight rail operations
Also stations, maintenance workshops, depot facilities
Railway training institute
Signaling, telecom, and also electrification systems
Strategic Objectives
Modernize Tanzania’s rail network
Also improve cargo movement from Dar es Salaam Port inland
Strengthen regional trade links with neighboring countries
Reduce logistics costs and travel times
Challenges
Large capital requirements across multiple phases
Also cross-border coordination for regional integration
Execution of long-distance rail construction
Current Status
$2.2 billion financing secured for Lots 3 and 4
Also loan signing set for Dodoma
Construction expansion advancing under Yapi Merkezi
