Browsing: Tanzania- Zambia Railway Authority (TAZARA)

Reallocation of government financing is essential in unlocking infrastructure potential. It eliminates the crowding out of private-sector funding, as government investing in most commercially viable assets is crucial to those with lower returns (Mckinsey). 

Tanzania is one of the nations that leverages its internal revenue to fund its projects, including iconic bridges in the nation’s commercial capital and several roads, buildings and facilities across the country.  

Kenya is another excellent example of a solution offered by Mckinsey as the government prioritised investment in municipal infrastructure as part of a drive to provide 500,000 new affordable housing units in five years.  

Ethiopia is moving similarly, whereby it has prioritised investment in industrial development zones to attract global apparel manufacturers.  

In the most recent development, an additional 282km of the railway are being constructed to connect Tanzania and Burundi giving the latter access to East Africa biggest and busiest port.

The construction is an extension of the already laid down Standard Gauge Railway (SGR) in Tanzania. The two governments have signed an agreement that paves way for new rail to be laid at a sum of US$900 million.

What does this extension mean for Burundi and how will it benefit Tanzania?

Apart from the obvious economic benefits, let’s first consider the small towns through which the railway snakes. From Tanzania’s little town of Uvinza in the Kigoma region to the bustling capital city of Gitega in Burundi, the railway is expected to spark life, rejuvenate slowed businesses and build new people relations.