Rwanda and Tanzania have agreed to advance a $2.5 billion standard gauge railway (SGR) linking the port of Dar es Salaam to Kigali, as the two countries deepen cooperation on transport, energy and regional trade.

The planned electrified railway will run from Dar es Salaam through Isaka to Kigali, targeting lower transport costs, faster freight movement and improved connectivity for landlocked Rwanda.

The agreement followed talks in Dar es Salaam on Sunday between President Paul Kagame and President Samia Suluhu Hassan, which focused on port access, rail infrastructure, energy projects and regional integration.“Tanzania is an important link, not just for Rwanda but for other neighbours. The port of Dar es Salaam is one example of many places vital to our economy,” President Kagame said. “At this time of political uncertainty, our region must remain focused and united around a shared vision for prosperity and cooperation,” he added.

Rail ambitionsTransport and logistics featured prominently in the talks, particularly the role of Tanzanian ports in facilitating trade with Rwanda and the wider East African Community (EAC).

The two leaders agreed to strengthen port operations through special logistics arrangements aimed at improving cargo-handling efficiency for Rwanda.“We have a responsibility to our citizens to ensure we are developing and strengthening our relationship between our two countries and the rest of the EAC partner states,” President Kagame said.

Rwanda, which has no railway network, relies heavily on Tanzanian transport corridors, with about 70 percent of its imports passing through Tanzania.

The 400km railway is expected to be financed through a mix of development loans and private capital. Tanzania has already secured significant financing support for its wider SGR network, including a $2.33 billion syndicated loan arranged by Standard Chartered.

The Rwandan section will cover 150km, with plans for a future extension to the border with the Democratic Republic of Congo.

Trade tiesThe leaders also highlighted the role of the Joint Permanent Commission for Cooperation (JPC), established in 1976, as the main framework guiding bilateral cooperation in trade, investment, agriculture, energy, transport, defence, security and immigration.

President Kagame, speaking during the period of commemoration of the 1994 Genocide against the Tutsi, said Rwanda would “soon have the opportunity to publicly recognise some Tanzanian citizens whose actions during that time demonstrated exceptional heroism and compassion.”President Samia described Tanzania and Rwanda as historic partners bound by shared culture, longstanding people-to-people ties, and decades of cooperation dating back to pre-colonial times. She said about 70 percent of Rwanda’s cargo passes through Tanzanian ports, amounting to 1.6 million tonnes annually.“It is our responsibility, as the country with ports in this region, to ensure efficient and reliable services to our landlocked neighbours,” President Samia said.

Bilateral trade between the two countries reached $246.6 million (Tsh644 billion; Rwf360 billion) last year.

The two governments are also seeking to eliminate non-tariff barriers, expand investment and improve logistics infrastructure.“We are encouraged by the steady growth in trade between our two countries, which reflects the strength of our partnership,” President Samia said.

Energy linksEnergy cooperation also featured prominently, with both countries reaffirming support for the Rusumo Hydropower Project involving Rwanda, Tanzania and Burundi, which generates 80 megawatts of electricity.“We are committed to ensuring that regional energy projects like Rusumo deliver shared benefits to our people,” President Samia said.

The two countries also agreed to strengthen electricity trade between Tanesco and the Rwanda Energy Group to support industrial growth and regional energy integration.

Telecommunications cooperation was also discussed, including Rwanda’s expanded use of Tanzania’s fibre optic infrastructure to improve digital connectivity.

Rwanda has registered 42 investment projects worth $325.5 million in Tanzania since March, creating more than 2,200 jobs.

Tanzanian firms operating in Rwanda include as Bakhresa, Magodoro Dodoma, Discount Centre, Jambo Plastics, Sagar Enterprises, Buffalo Travel & Tours, Maxcom Africa, Gasabo Grain Milling Company, LCM Delta Company and Matrix Integrated Consultancy.

© Copyright 2026 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).