The signing of the US$1.2 billion commercial financing facility advances the financing arrangements for Tanzania’s 411-kilometre electrified Tabora–Kigoma Standard Gauge Railway. The African Development Bank’s US$800 million Partial Credit Guarantee has enabled participation by a nine-bank syndicate, combining guaranteed lending with sovereign credit exposure and international insurance capacity. The transaction demonstrates how development finance guarantees can be used to mobilise commercial capital for large-scale railway infrastructure.
For Tanzania and the wider region, the Tabora–Kigoma line forms part of a railway network intended to improve connectivity between the port of Dar es Salaam, western Tanzania and markets in the Democratic Republic of Congo through Lake Tanganyika. The AfDB expects the corridor to support more efficient freight movement, lower transport costs and improved access to markets for agricultural and mineral production. The wider programme also envisages stronger connections with Burundi and eastern DRC, extending the potential commercial relevance of the investment beyond Tanzania.
- Tanzania signed a US$1.2 billion commercial facility for Lot 6 of its Standard Gauge Railway, with the African Development Bank as Initial Mandated Lead Arranger, the AfDB said on 4 November 2026.
- The AfDB arranged a Partial Credit Guarantee of up to US$800 million covering principal and two years of interest.
- A nine-bank syndicate, co-arranged by Deutsche Bank and Société Générale, provides US$720 million of guaranteed lending and US$480 million of clean-risk lending.
- Credit insurance arranged by Texel distributes US$405.5 million of exposure to international insurers, including Lloyd’s syndicates.
- The facility forms part of an overall US$2.3 billion financing package within an AfDB mandate of up to US$3.2 billion.
- The financing supports construction of the 411-kilometre electrified Tabora–Kigoma line.
Tanzania has signed a US$1.2 billion commercial financing facility for the Tabora–Kigoma section of its Standard Gauge Railway, known as Lot 6, with the African Development Bank (AfDB) acting as Initial Mandated Lead Arranger. The AfDB structured and arranged a Partial Credit Guarantee (PCG) of US$800 million, which it describes as its largest to date.
The AfDB mobilised a nine-bank syndicate for the facility, co-arranged by Deutsche Bank and Société Générale. The other lenders are HSBC, Commerzbank, Nedbank, Stanbic Bank Tanzania, First Abu Dhabi Bank, FirstBank UK and Bank of Africa United Kingdom. Their commitments comprise US$720 million of guaranteed lending and US$480 million of lending based on clean risk to the sovereign.
The PCG, of up to US$800 million, covers the principal of the covered tranche plus two years of interest, with the AfDB remaining Guarantor of Record. Credit insurance arranged by the broker Texel distributes US$405.5 million of exposure to a panel of international insurers, including Lloyd’s syndicates.
The US$1.2 billion facility forms part of an overall US$2.3 billion financing package. Outside the commercial tranche, the package comprises an export credit agency tranche and a further tranche to be mobilised in collaboration with a co-guarantor. Tanzania has mandated the AfDB to structure and mobilise up to US$3.2 billion for the Standard Gauge Railway project.
The financing will support construction of the 411-kilometre electrified Tabora–Kigoma line. The AfDB says the line, connected to Tanzania’s wider railway network and the port of Dar es Salaam, will support trade with the Democratic Republic of Congo across Lake Tanganyika through Kigoma and Kalemie ports, while the wider regional railway programme will strengthen links with Burundi and further into eastern DRC. For western Tanzania, the bank expects the line to provide a long-haul, high-volume link for production and trade, with farmers, mining operators and the general population benefiting from more efficient transport, lower transport costs and employment during construction and operation.
“By combining development finance, commercial lending and insurance capacity, we have successfully unlocked the scale of financing required to deliver this type of transformational regional infrastructure,” said Max Ndiaye, Senior Director, African Development Bank Group.
Mike Salawou, Director of the AfDB’s Infrastructure and Urban Development Department, said: “Our ambition is to translate this landmark financing into a corridor that supports competitive industries, creates jobs and deepens regional integration.”
