Standard Chartered has arranged more than $2.33 billion in syndicated funding to support the construction and modernisation of the SGR in Tanzania, strengthening momentum behind one of East Africa’s largest rail infrastructure programmes.
The deal positions Standard Chartered at the centre of financing for Tanzania’s SGR expansion, alongside international lenders, through a multi-layered structure combining export credit support and long-term commercial funding. The transaction adds to ongoing financing for Tanzania’s SGR, which is being implemented in phases across the country.
Proceeds will fund the next stage of Tanzania’s SGR Railway project, with Turkish contractor Yapi Merkezi undertaking Lots 3 and 4, covering about 430 kilometres between Makutupora and Isaka. This section is part of the wider Tanzania’s SGR network linking Dar es Salaam to Mwanza.
Under the arrangement, Standard Chartered took on multiple roles including Sole Global Coordinator, Bookrunner and Mandated Lead Arranger, expanding the Standard Chartered role in Tanzania’s SGR Railway project as the lender continues to structure large cross-border infrastructure deals in Africa. The bank’s involvement also positions it as a key Tanzania’s SGR financier, following earlier funding rounds tied to the railway’s initial phases.
Blended financing structure
The funding for Lots 3 and 4 combines $1.32 billion in Export Credit Agency-backed facilities signed across 2025 and 2026 with an additional $462 million in long-term funding agreed in 2023. The package reflects a typical Standard Chartered syndicated financing structure, bringing together public and private capital sources to support large-scale infrastructure. Export credit backing was provided by EKN and SEK, alongside KUKE and SACE, with additional reinsurance from other agencies.
For Lot 5, which connects Isaka to Mwanza over roughly 249 kilometres, a separate $559 million facility backed by Sinosure was drawn in 2025. Construction of that segment is being handled by China Civil Engineering Construction Corporation.
Economic and logistics impact
The construction and modernisation of the SGR in Tanzania is expected to improve cargo movement between the port of Dar es Salaam and inland regions, while linking key trade corridors in western Tanzania and neighbouring countries. The railway is also designed to support passenger transport and reduce reliance on road freight. The project is being implemented by Tanzania Railways Corporation, with the government overseeing delivery as part of its long-term infrastructure programme.
Executive comments
Ciro Aquino, Head of Task Force Africa at SACE, said the agency’s continued involvement follows earlier participation in Lots 1 and 2, adding that the project supports Italian companies working in infrastructure development across Africa.
Ake Norlander, Director-General at EKN, said the agency’s participation contributes to expanding safer and more efficient transport alternatives compared with road networks. Janusz Władyczak, CEO of KUKE, said the project shows how international financial institutions can coordinate to fund infrastructure with direct economic impact. Herman Kasekende, CEO and Head of Coverage at Standard Chartered Tanzania, said the bank is focused on supporting large infrastructure projects that improve logistics capacity, trade flows and employment.
Track record
The latest deal builds on earlier funding arranged by Standard Chartered, including $1.46 billion in export credit-backed financing for Lots 1 and 2 signed in 2020. With multiple segments underway, Tanzania’s SGR Railway project continues to attract coordinated backing from global lenders, reinforcing its role in regional transport and trade integration.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.