China, Zambia and Tanzania seal Sh181 billion deal to revive Tazara rail link
According to Zambia’s government, the funding will cover the refurbishment of the rail line as well as the purchase of locomotives, passenger coaches, and wagons.
China, Zambia, and Tanzania on Monday formalised a $1.4 billion (Sh181.1 billion) agreement to modernise the Tanzania-Zambia Railway (TAZARA), a key corridor for copper and cobalt exports in East Africa.
According to Zambia’s government, the funding will cover the refurbishment of the rail line as well as the purchase of locomotives, passenger coaches, and wagons.
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The deal builds on an agreement signed last year, marking a renewed push to restore the 50-year-old railway and boost trade efficiency across the region.
Experts say the rehabilitation will strengthen East Africa’s rail-sea transport network at a time when alternative routes, such as Angola’s Lobito corridor backed by the United States, are drawing global attention.
Stretching 1,860 kilometres from Zambia’s mineral-rich areas to the Tanzanian coast, TAZARA was built between 1970 and 1975 with an interest-free loan from China.
Tens of thousands of Chinese and African workers constructed hundreds of bridges and dozens of tunnels to complete the single-track line, which began operations in 1976.
Direct access to sea
For decades, the railway has given Zambia direct access to the sea, bypassing South Africa and the former state of Rhodesia, cementing its strategic importance for regional mineral exports.
International partners have also backed its rehabilitation. Earlier this year, China proposed a $1 billion (Sh129.3 billion) public-private partnership for the project, while the World Bank approved $270 million (Sh34.9 billion) to improve Tanzania-Zambia connectivity and support regional trade.
In February, a memorandum of understanding on TAZARA’s restoration was signed in Beijing during the Forum on China-Africa Cooperation, witnessed by Chinese President Xi Jinping, Tanzanian President Samia Suluhu Hassan, and Zambian President Hakainde Hichilema.
Xi underlined China’s commitment to strengthening the rail-sea transport network in East Africa and positioning Tanzania as a model for Belt and Road cooperation.
"China is willing to take this summit as an opportunity to make new progress in the revitalisation of the Tanzania-Zambia railway, cooperate to improve the rail-sea intermodal transport network in East Africa, and build Tanzania into a demonstration zone for deepening high-quality China-Africa Belt and Road cooperation," Xi said at the time, according to state media.
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