Speaking in an interview after the signing of a USD 1.3 billion loan agreement to finance the construction of Lot 3 and Lot 4 of Tanzania’s Standard Gauge Railway (SGR), the Head of Large Corporates at Sweden’s Export Credit Agency (EKN), Lena Bertilsson, said the participation of institutions such as EKN, which holds a AAA credit rating, increases the project’s credibility and attractiveness to investors.
“Being a government agency EKN, we benefit from the same credit rating like like the sovereign the Kingdom of Sweden, so it’s a triple ‘A’ rating,” she said.
“Which means that when we come in and support a product like this with guarantees we will be able to attract more private capital to a financing like this which wouldn’t maybe happen the in the same magnitude if we haven’t been involved,” she added.
Bertilsson revealed that EKN has been involved in the project since its early stages, including conducting environmental impact assessments and supporting the training of Tanzania Railways Corporation (TRC) staff, key factors in ensuring the project is bankable.
“So we were involved in lot 1 and 2 together with with Denmark and and now for this lot 3 and 4 it was together with Italy and and Poland and so of course we we we have learned a lot during this journey which is of course helpful for everybody that we can can support the others as well,” Bertilsson explained.
READ: Sweden Expands Financing for Tanzania’s $10bn SGR Project
Lot 3, which covers a 368-kilometre section between Makutupora and Tabora, is being implemented by contractor Yapi Merkezi at a cost of USD 1.9 billion. Meanwhile, Lot 4, which covers a 165-kilometre section between Tabora and Isaka, is also being constructed by Yapi Merkezi at a cost of USD 900 million.
The financing structure of the project is highly complex so it is implementation involving a network of suppliers from multiple countries for both products and key services such as reinsurance.
“Looking at this this project,it’s suppliers come from all different kinds of countries even though the largest portion is is related to Sweden. But there are still some components from Japan and Switzerland and then of course Poland and and Italy as well,” Bertilsson explained.
Tanzania’s SGR is one of the most transformative transportation projects in recent years. The completed sections, from Dar es Salaam to Morogoro and Dodoma — have so far served more than five million passengers.
READ: Infographic: Inside the Tanzania’s USD 10.04 Billion Railway
One of the most significant impacts has been on business and the environment, as the railway has reduced the eight-hour journey between Tanzania’s commercial capital, Dar es Salaam, and the national capital, Dodoma, to just three hours. The train’s convenience has also allowed passengers to work seamlessly while travelling between the two cities.
It is now common for civil servants to attend meetings in Dar es Salaam and return to Dodoma on the same day, a process that previously required at least three days. Even greater economic impact is expected once cargo freight services become fully operational.
Speaking about her experience using the SGR service from Dar es Salaam to Dodoma for the signing of the loan agreement on April 28, 2026, Bertilsson said she is proud of the project, noting that it has become a model for neighbouring countries.
“The experience is very nice. It’s on time, clean and a very friendly atmosphere. So we are very proud of the train,” she emphasized.
