China to Invest $1.4B to Rehabilitate TAZARA
During the Zambia International Mining and Energy Conference (ZIMEC) which kicked off in Kitwe on 19 March 2025, the CEO of the Tanzania-Zambia Railway (TAZARA) Authority, Bruno Ching’andu, announced that China Civil Engineering Construction Corporation (CCECC) plans to invest USD 1.4 billion to rehabilitate the regional railway under the proposed Public-Private Partnership (PPP) agreement.
In September 2024, it is to be recalled that the three parties already signed an cooperation MOU on #TAZARA on the sidelines of the FOCAC Summit in Beijing under the watchful eyes of Chinese, Zambian and Tanzanian Presidents Xi Jinping, Hakainde Hichelema, and Samia Hassan. Therefore, the concession agreement constitute a more detailed agreement based on the intention and principles outlined in the MoU.
“This concession will mark the beginning of a new era for TAZARA. The investment from CCECC will not only restore our railway infrastructure but also position TAZARA as a key enabler of trade and economic growth between Tanzania and Zambia. Through this strategic partnership, we are ensuring that TAZARA remains a competitive and sustainable transport solution for the region.”
TAZARA Authority CEO Eng. Bruno Ching’andu
The TAZARA concession period is for 30 years, with upgrade taking place during the first three years. USD 1 billion has been earmarked for the rail rehabilitation. Another USD 400 million is intended to procure the rolling stock, including 32 locomotives and 762 wagons. Obviously, periodic overhauls will be scheduled during the 30-year concession period.
CEO Ching’andu pointed out that negotiations are about to be concluded. The #PPP model was selected after extensive due diligence to ensure the alignment of TAZARA’s long-term vision with the interests of the concessionaire CCECC.
The TAZARA is known as the Uhuru Rail or Freedom Rail within the region and represents a strong symbol of China-Africa friendship. During the decolonization drive in Africa, TAZARA emerged as a concrete outcome of South-South Cooperation as China supported African countries in their fight for freedom. Originally, TAZARA was designed to help Zambia to export its copper via Tanzania while avoiding the then apartheid regime in South Africa.
The impending conclusion of TAZARA deal comes after the USA formally backed the rival #LobitoCorridor from Angola to DR Congo. As a matter of fact, then President Biden hailed the Lobito Corridor as response of #PG2I to #BRI during his state visit to Angola in 2024. He also underlined the importance of the Corridor to the US in the race to access #CriticalMinerals in the landlocked countries of DR Congo and Zambia.
The rehabilitation of TAZARA is expected to tighten regional economic integration, reduce transport costs and improve connectivity with the Dar es Salaam as the entry-exit seaport on the Indian Ocean. From a regional integration perspective, it would actually make sense to eventually link up TAZARA with the Lobito Corridor.