The role of Tanzania's SGR in fostering intra-African trade

Standard Chartered Bank is making significant strides in driving sustainable finance to deepen investments in the region. CNBC Africa recently interviewed Herman Kasekende, the CEO of Standard Chartered Bank Tanzania, on the bank's involvement in shaping the prospects of regional trade in Africa. One of the key projects he highlighted was the Standard Gauge Rail (SGR) project in Tanzania, where Standard Chartered Bank served as the lead arranger and syndicating bank for the close to $1.5 billion initiative. The initial phase of the project, spanning from Dar es Salaam to Dodoma, was launched at the end of July 2024. This transformative project is set to enhance regional connectivity by linking economic hubs in Tanzania and extending to landlocked countries like Burundi, Rwanda, the DRC, and Uganda. The infrastructure is expected to reduce transportation costs and transit times for both cargo and people in the region, making cross-border movement more efficient and cost-effective. This improvement in connectivity and logistics is poised to boost the competitiveness of East Africa in both regional and international markets, fostering economic growth and integration across the region. Kasekende emphasized the strategic alignment of the SGR project with key objectives of integration and connectivity within regional trade blocs like SADC, COMESA, and the East African community. By linking 29 African countries, the project aims to expand existing trade corridors, reduce freight costs, and enhance overall integration efforts. The CEO highlighted the role of sustainable finance in such mega investments, underscoring Standard Chartered Bank's commitment to promoting sustainable development in the region. The bank has pledged to mobilize $300 billion of sustainable finance by 2030, with a focus on mitigating emissions and adhering to high environmental standards. The SGR project exemplifies this commitment, with a strong emphasis on sustainability throughout its lifecycle - from product and material sourcing to project execution. Strict compliance with sustainability standards, including protecting biodiversity and ensuring the well-being of affected communities, underscores the bank's dedication to responsible and green investments in Africa.