Tanzania’s Standard Gauge Railway Represents a Major Public Investment with Its True Value in Downstream Economic Activity

Tanzania’s Standard Gauge Railway (SGR), initially driven by the need to reduce transport costs and strengthen trade, is increasingly reshaping regional tourism across East and Central Africa. By linking Dar es Salaam to inland cities such as Morogoro and Dodoma, with extensions planned to Lake Victoria and neighbouring countries, the SGR is positioning Tanzania as a central gateway to the Great Lakes region rather than a peripheral destination.

The railway significantly cuts travel times, improves reliability and lowers costs, making multi-country overland travel more practical for both international and regional visitors. Dar es Salaam is emerging as a preferred entry and transit hub, supporting tourism flows linked to conferences, business travel and cross-border circuits.

While the SGR represents a major public investment, its wider value lies in the economic and tourism activity it enables. Along the corridor, cities and towns are benefiting from increased travel, job creation and growing domestic tourism, which underpins longer-term international demand.

Aligned with regional integration agendas and complemented by ports, airports and aviation investments, the SGR is helping Tanzania leverage its geography to connect the coast, interior and neighbouring states. In doing so, it is quietly redefining Tanzania’s role as a regional tourism hub and a key conduit for integrated travel across East and Central Africa.