Standard Chartered secures $2.33 billion for Tanzania railway    

Standard Chartered, has arranged $2.33 billion in syndicated financing for a major railway project in Tanzania, backing efforts to improve transport links across East Africa. 

The funding will support Turkish contractor Yapi Merkezi in building Lots 3 and 4 of the Standard Gauge Railway, a 430-kilometer stretch linking Makutupora to Isaka. Lot 5, a separate 249-kilometer section from Isaka to Mwanza, is being handled by China Civil Engineering Construction Corporation. 

The wider rail line, spanning Lots 1 through 5 from Dar es Salaam to Mwanza, ranks among the largest infrastructure projects in Tanzania’s history.

Standard Chartered leads financing roles

The package for Lots 3 and 4 includes $1.32 billion in export credit agency-backed financing signed between 2025 and 2026, alongside $462 million in long-term funding from commercial banks and development finance institutions agreed in 2023. 

Standard Chartered served as sole global coordinator, bookrunner, mandated lead arranger, facility agent and lender to Tanzania’s Ministry of Finance. 

The export credit facilities draw support from agencies including Sweden’s EKN and SEK, Poland’s KUKE and Italy’s SACE, with additional backing through reinsurance arrangements. 

For Lot 5, the financing includes a $559 million facility covered by Sinosure, China’s export credit agency, drawn in 2025. Standard Chartered held similar roles on that tranche. 

Bankers involved say the deal reflects close coordination among export credit agencies to fund large, cross-border infrastructure projects.

SGR seen boosting regional connectivity

Once completed, the Standard Gauge Railway is expected to link the port of Dar es Salaam with inland regions and neighboring countries, offering an alternative to road transport for passengers and freight. 

The project is also seen as a way to open up trade routes in western Tanzania while creating jobs during construction and operation. The government is overseeing development through the Tanzania Rail Corporation. 

Standard Chartered said the latest financing builds on its earlier role in arranging $1.46 billion for the first two phases of the railway, signed in 2020.

Multilateral backing strengthens infrastructure push

“SACE is pleased to support Lots 3 and 4 of the Standard Gauge Railway, following its support for earlier phases,” said Ciro Aquino, head of task force Africa at SACE. He added that the deal supports Italian companies working on projects tied to Africa’s economic development. 

Ake Norlander, director-general of EKN, said the agency had backed earlier phases of the railway and sees the project as a safer and more efficient alternative to road transport. 

Janusz Władyczak, chief executive of KUKE, said the financing highlights the role of international cooperation in delivering large infrastructure projects with broad economic benefits. 

Herman Kasekende, chief executive and head of coverage for Standard Chartered in Tanzania, said the bank remains focused on supporting infrastructure that can strengthen trade and create jobs. He added that the railway could help position Tanzania as a regional logistics hub.

Standard Chartered backs railway financing

Standard Chartered, headquartered in London, operates in 54 markets across Asia, Africa and the Middle East. The bank said its involvement in the railway project aligns with its broader focus on financing infrastructure that supports trade and economic activity in emerging markets.