The Tanzanian government has earmarked TSh 1.51 trillion from domestic sources for the 2025/26 financial year to advance key components of the Standard Gauge Railway (SGR) project — a strategic initiative expected to revolutionize transportation and stimulate national and regional economic growth.
The allocation was announced on May 15, 2025, by the Minister for Transport, Professor Makame Mbarawa, during his presentation of the ministry’s revenue and expenditure estimates in Parliament.
According to Prof Mbarawa, the funding will prioritize the completion of the Morogoro–Makutupora section (422 km) and support continued construction of the Makutupora–Tabora line (368 km). Additional sections to benefit from the allocation include:
Tabora–Isaka (165 km)
Isaka–Mwanza (341 km)
Tabora–Kigoma (506 km)
Uvinza–Musongati (240 km)
The budget also includes funds for the procurement of operational equipment such as train locomotives, wagons, maintenance tools, and machinery. Importantly, it provides for the training of technical personnel in railway operations and management — a critical step toward ensuring long-term efficiency and sustainability of the SGR system.
Maintenance of the Dar es Salaam–Morogoro stretch, which is already operational, will also be covered. The government has further committed to environmental and social impact management in line with project contracts and international standards.
Prof Mbarawa emphasized that part of the allocation will be used to develop and implement strategies for cargo generation, ensuring the SGR remains economically viable once fully operational.
“The government remains committed to completing this transformative infrastructure, which is key to boosting trade, reducing transportation costs, and accelerating economic growth,” he said.
The SGR project is a flagship initiative in Tanzania’s broader infrastructure agenda, aimed at modernizing the country’s transport network, linking key economic zones, and enhancing regional trade connectivity across East and Central Africa.