Tanzania is in advanced discussions with Turkey’s Exim Bank to obtain a $280 million loan for the third and fourth segments of its Standard Gauge Railway. The Daily News reports that these talks occurred in Antalya during the COP31 climate summit. The Tanzanian team was headed by Finance Minister Khamis Mussa Omar, while the Turkish side was represented by Chief Executive Officer Ali Guney. Omar stated that the two unfinished segments span over 700 kilometers and require a total of $1.6 billion to finish. He explained that $1.32 billion has already been raised, leaving the remaining balance to be covered by the Turkish institution.
The minister described the railway as a major infrastructure undertaking extending more than 2,000 kilometers. It is designed to connect the port city of Dar es Salaam with western areas like Mwanza and Kigoma, as well as neighboring nations such as Rwanda, Uganda, Burundi, and the Democratic Republic of Congo. The project is split into six lots, with the initial two connecting Dar es Salaam and Dodoma already finished and running. Omar told the Daily News that these early sections have been positively received by citizens. He also noted that the railway uses electricity, aligning with the clean energy goals of COP31 and offering a sustainable transport alternative.
Guney emphasized that the bank values the railway’s role in Tanzania’s development and regional growth. He confirmed that the bank’s board will meet this month to review the financing request. Beyond the rail project, the Turkish Exim Bank is exploring broader economic ties, including funding for future roads and bridges. These efforts support the trade ambitions of Tanzanian President Samia Suluhu Hassan and Turkish President Recep Tayyip Erdogan, who aim to boost bilateral trade to at least $1 billion. The negotiations highlight the ongoing economic cooperation between the two nations.