Abstract
Subject East African rail infrastructure plans. Significance Tanzania, Burundi and the Democratic Republic of the Congo (DRC) in December agreed to build a 6.5-billion-dollar standard-gauge railway (SGR) line connecting the three countries through Tanzania’s ‘Central Corridor’. The agreement aims to expand the scope of a massive planned rail network spanning much of East Africa. However, this project, already over a decade in the making, has faced repeated setbacks, especially in Kenya’s ‘Northern Corridor’. Impacts As infrastructure spending slows amid tightening finance conditions, East Africa will struggle to sustain its current fast growth. Although Tanzania’s debt is currently manageable, it is growing rapidly; new SGR borrowing would put further pressure on the debt ceiling. Construction of a major new Mombasa-Nairobi highway will further reduce incentives to use Kenya’s railways for freight.
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