Tanzania has secured Sh3.67 trillion for the construction of two sections of the Standard Gauge Railway (SGR), covering the route from Makutupora in Singida Region to Isaka in Shinyanga Region via Tabora, Transport Minister Prof Makame Mbarawa has said.
The funding will support Lots 3 and 4, which cover a combined 424 kilometres of main railway line: 294 kilometres from Makutupora to Tabora under Lot 3 and 130 kilometres from Tabora to Isaka under Lot 4.
Prof Mbarawa made the announcement on October 24, 2026, during an inspection tour to assess progress on construction. He said implementation had been delayed mainly by contractors’ work planning rather than a shortage of funds. ‘There is no funding problem. The main challenge has been the contractor’s own planning. Funding may be available, but disbursements depend on the submission of sufficient Interim Payment Certificates (IPCs) for work completed,’ he said.
Prof Mbarawa said the government expected construction to accelerate following changes to the organisation of the works.
The construction activities had been divided into five sections to improve coordination and speed up implementation. Under the revised arrangement, One Group, which was initially assigned a 100-kilometre stretch, would complete 45 kilometres, while other contractors would take over the remaining works.
The minister did not specify how the remaining sections had been distributed among contractors.
Tanzania Railways Corporation (TRC) Director General Machibya Shiwa said the corporation would strengthen supervision to ensure contractors followed agreed work schedules.
He said TRC had instructed the contractor to submit a detailed plan outlining daily activities, including bridge construction and railway embankment works, to improve monitoring and accountability.
Shiwa said the section was expected to reach its final stages of completion by 2028.
The two lots form part of the SGR network intended to connect Dar es Salaam with Mwanza, improving passenger and freight transport across the country. The railway is also expected to strengthen links between central and western Tanzania and support trade with neighbouring countries.
The government’s immediate challenge is to translate the secured funding into faster construction and meet the planned implementation milestones.