The government has defended the agreement between Tanzania, Zambia and China to rehabilitate the Tanzania–Zambia Railway Authority (TAZARA), saying the deal will deliver wide-ranging economic and social benefits while ending years of operational losses.
Government Chief Secretary and Chief Spokesperson Gerson Msigwa said the project would restore TAZARA’s efficiency and transform it into a commercially viable regional transport corridor. He was responding to criticism on social media questioning the value of the agreement.
Mr Msigwa said TAZARA, built between 1970 and 1975 with an interest-free loan from China and handed over to Tanzania and Zambia in 1976, has struggled for decades with ageing infrastructure and operational inefficiencies.
As a result, the railway has failed to generate sufficient revenue and has relied heavily on government subsidies to remain operational.
Under the new arrangement, China, through the China Civil Engineering Construction Corporation (CCECC), will invest about $1.4 billion (TZS3.45 trillion) to modernise the railway.
The investment will cover rehabilitation of the track, construction of stations, acquisition of passenger trains and development of a major transshipment hub at Kidatu.
The Kidatu Transshipment Joint Facility will allow cargo from the Central Railway Line, which uses standard gauge, to be transferred to the Cape Gauge TAZARA line, improving connectivity between Tanzania’s rail networks and regional corridors.
Mr Msigwa said CCECC will carry out rehabilitation works for three years before operating the railway for 30 years.
During this period, the company will pay the government $30 million (about TZS75 billion) annually. Currently, Tanzania alone spends more than TZS28 billion each year to support TAZARA’s operations.
He said the upgraded railway is expected to play a key role in boosting trade and industrial growth in Tanzania and Zambia, noting that TAZARA links to a Cape Gauge railway network stretching more than 50,000 kilometres across Africa.
For Tanzania, the modernised railway is expected to ease the transportation of minerals, including rare earth elements, cobalt, granite, coal and iron, as well as agricultural produce, to Southern African Development Community (SADC) markets and through the Port of Dar es Salaam.
Mr Msigwa urged the public to disregard negative narratives surrounding the project, describing the investment as a diplomatic and economic milestone.
He said the agreement followed high-level engagements led by President Samia Suluhu Hassan, including discussions with Chinese President Xi Jinping and her address to Zambia’s Parliament, where she called for joint commitment to reviving TAZARA.
The project has already moved into the implementation phase, with Chinese Premier Li Qiang having officially launched the rehabilitation works in Zambia, signalling the start of a long-awaited overhaul of the historic railway line.