Chinese Exim bank granted a $ 7.6 billion loan to Tanzania for the construction of a railway this Wednesday, July 20 to facilitate and boost trade relations between Tanzania and its neighboring landlocked countries including Burundi.
President Magufuli with the Exim Bank Manager, Liu Liang
The Tanzanian presidency confirms the loan was obtained from China’s Exim Bank. “Tanzania wants to modernize its damaged railways and roads to ensure the economic growth at the heart of East Africa,” it was said in a statement released by the office of the President of the United Republic of Tanzania, Dr John Magufuli.
The same statement said that the long-distance line of 2190 km will improve the trade between the countries of the sub-region “The railway will promote export and transport of goods between Tanzania and its neighboring countries including Burundi, Rwanda, Uganda and the DRC.”
The construction of this commercial artery between the East African countries and its neighbors is to begin next year. This concerns the following lines: Dar-Es- Salaam-Tabora-Isaka-Mwanza, Tabora-Mpanda-Kalemela and Tabora-Kigoma and Isaka-Uvinza-Keza – Musongati Burundi.
In the meantime, Burundi wants to rehabilitate its national road RN1.
On Wednesday 16th July, the National Assembly adopted a draft law on the ratification of the financing agreement between Burundi Government and the International Development Association (IDA). This bill provides for the financing of 25 million US dollars to contribute to the rehabilitation of transport and urban infrastructures damaged by torrential rains.
According to Jean Bosco Ntunzwenimana, Minister in charge of transport, NR1 will be rehabilitated first because it is widely used for trade. For him, studies related to the reconstruction of this axis following EAC standards have already been carried out.
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