Freight charges in Tanzania will decrease by 40 percent when the Standard Gauge Railway (SGR) starts to operate in the targeted route, a top bank official noted yesterday.
The modern railway will be able to haul up to 10, 000 tonnes of freight, equivalent to 500 lorries, per trip. “Through connecting Tanzania with Burundi, Rwanda and Democratic Republic of Congo (DRC), it would enhance regional trade, ” revealed Sanjay Rughani, the CEO of Standard Chartered Bank Tanzania.
Mr Rughani who led a team of senior bank officials to the northern regions, hinted that SGR will have a great benefit on the country’s economy 200 years to come. The SGR will definitely solve the experienced congestion challenges, especially in Cargo transportation.
The construction of SGR project from Dar es Salaam to Makutupora (Didoma was was funded by the UK-based Standard Chartered Bank Group whereby the government of Tanzania signed $1.46 billion (Sh3.3 trillion) term loan.
For Standard Chartered Tanzania, it is not just a mere normal funding, but it’s about changing lives of Tanzanians.
According to the ministry of finance and planning, the biggest component of financing will come from the Expory Credit Agencies of Denmark and Sweden. The Arusha branch manager, Mr Edwin Mahela said that the financial institution has started to benefit from the Social Banking Solution (SG Keyboard) launched last year.