Emerging Markets, Frontier Markets, Stocks

Africa: India Expressed Interest To Invest In Tanzania’s Intracity Rail Network Project

Tanzania is seeking funding from India to build a metro rail network in its commercial capital, Dar es Salaam, the president’s office said in a statement on Saturday,” Reuters reports.

Tanzania Map Africa

Dar es Salaam (literally “The residence of peace”), formerly Mzizima, is Tanzania’s largest and richest city, the largest city in eastern Africa by population, and is a regionally important economic centre. As one of the fastest-growing cities in sub-Saharan Africa, it faces a traffic congestion problem.

With a population increase of 5.6 percent per year from 2002 to 2012, the city is the third fastest growing in Africa (ninth fastest in the world), after Bamako and Lagos. The metro population is expected to reach 5.12 million by 2020.

Population

Source: Wikipedia

President Jakaya Kikwete said in the statement that India’s Infrastructure Leasing & Financial Services Ltd (IL&FS) had expressed interest to invest in the metro rail. However, he did not disclose how much the metro project would cost, according to Reuters.

Last Friday, the Tanzanian president visited Indian Prime Minister Narendra Modi in New Delhi. He submitted an official request for funding for the project.

Last May, Tanzania disclosed it plans to spend around $2 billion to build new roads and a bus rapid transit system to tackle traffic in Dar es Salaam.

Tanzania Railways operates the Central Line from Dar es Salaam to Kigoma. The TAZARA Railway connects Dar es Salaam to Zambia.

Railways in Tanzania. Courtesy of Wikimedia.

Railways in Tanzania. Courtesy of Wikimedia.

Most intracity transport is by the dala dala (minibus) or Dar es Salaam commuter rail.

The bus rapid transit system under construction will be operated by the Dar Rapid Transit Agency (DART),  which is a government entity. DART is being sponsored by the World Bank.

Tanzania and India want to increase annual bilateral trade. Currently it stands at around $4 billion.

DART - Implementation Phases

DART – Implementation Phases

Dar es Salaam Rapid Transport

Dar es Salaam Rapid Transport

About ETFalpha

Chief ETF Strategist & Co-Founder at EMerging Equity

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