China Civil Engineering Construction Corp (CCECC) is set to invest over $1.4 billion in modernizing the Tanzania-Zambia Railway (TAZARA), a historic rail line that connects Zambia’s copper-rich region to Tanzania’s largest port. This substantial investment aims to revamp aging infrastructure, enhance trade efficiency, and strengthen economic ties between the two countries.
TAZARA has long been a crucial transport route for Zambia and other landlocked Central African nations, facilitating the movement of copper and cobalt exports to global markets. However, in recent years, the railway has faced operational challenges, including deteriorating tracks, aging locomotives, and inefficiencies that have hampered its ability to compete with alternative transport routes. With significant delays affecting shipments through South Africa’s ports, TAZARA remains an essential alternative for moving minerals and goods across the region.
Negotiations for a 30-year concession between the governments of Tanzania, Zambia, and CCECC are currently in progress. According to Bruno Ching’andu, managing director of the Tanzania-Zambia Railway Authority (TAZARA), the decision to involve the Chinese company in the upgrade followed a comprehensive assessment of the railway’s longstanding challenges. Authorities determined that urgent intervention was necessary to restore efficiency and competitiveness to the railway system.
As part of the agreement, $1 billion will be allocated to rehabilitate the railway tracks, while $400 million will be used to procure 32 new locomotives and 762 wagons. The modernization effort is expected to improve both freight and passenger services, reducing transportation costs and making cross-border trade more efficient. The railway upgrade is particularly significant for Zambia’s mining industry, which depends heavily on reliable transportation to export its minerals. By enhancing TAZARA’s efficiency, the investment could help stabilize the supply chain for copper and cobalt, two critical commodities in the global energy transition.
This investment comes amid increased competition in African infrastructure projects, as Western nations and China vie for influence in key economic corridors. The United States, for instance, has backed an alternative transport project known as the Lobito Corridor, which runs through Angola and is also designed to facilitate mineral exports. Despite this, China’s commitment to rehabilitating TAZARA highlights its continued strategic interest in Africa’s transportation infrastructure, reinforcing its economic partnerships on the continent.
TAZARA was originally built in the 1970s with funding and technical support from China under Mao Zedong’s leadership. The railway was considered a landmark project in China-Africa relations, aimed at providing an independent trade route for Zambia, which was then heavily reliant on transport networks controlled by apartheid-era regimes in southern Africa. Since its construction, however, the railway has suffered from underinvestment, leading to significant inefficiencies and declining service levels.
With this latest commitment, CCECC is set to implement the most significant upgrades to TAZARA since its inception. If successfully executed, the modernization of the railway could significantly boost trade, create jobs, and foster economic growth in both Tanzania and Zambia. The project also reaffirms China’s long-term involvement in African infrastructure development, further cementing its role as a key player in the continent’s economic transformation.
