The East African Community (EAC) announced today that the multi-billion-dollar East African Logistics Corridor project has achieved full funding, following the commitment of an additional $750 million from a consortium of international development banks and private investors. This final financing package will enable the immediate commencement of Phase 2, focusing on the modernization and expansion of key road and rail networks connecting landlocked countries to major maritime ports like Mombasa and Dar es Salaam.
The project, a cornerstone of the EAC's regional integration strategy, aims to reduce transit times, lower transportation costs, and enhance the overall efficiency of freight movement. Specific upgrades include the construction of new rail links, rehabilitation of existing tracks, and the development of multi-modal logistics hubs at strategic inland locations. Analysts project a potential 15-20% reduction in average transit times for goods moving through the corridor once fully operational.
This development is expected to significantly boost intra-regional trade and facilitate greater access for East African products to international markets. Furthermore, the enhanced infrastructure will improve the competitiveness of the region's ports, positioning them as vital gateways for global trade. The first major construction tenders for rail upgrades are anticipated to be issued by Q3 2026.