The World Bank and African Development Bank have agreed to provide funds for a rail project to link Tanzania, Rwanda and Burundi, which is expected to improve trade among East African nations.
This follows the approval of the project's feasibility study in March, conducted by US freight railroad company Burlington Northern and Santa Fe Railway.
The standard gauge high-speed railway will be designed to operate trains at a minimum speed of 120kmph, making it the fastest in the East African region. It will have the capacity to carry several tonnes of cargo in each of the 2,000 wagons.
The project is expected to be complete by 2014.