GOVERNMENT DEFENDS TAZARA UPGRADE DEAL WITH CHINA, CITES MAJOR ECONOMIC BENEFITS

The Government has assured Tanzanians that the agreement entered into by Tanzania and Zambia with China to upgrade the Tanzania–Zambia Railway Authority (TAZARA) will bring significant economic and social benefits to the country.

The Government Spokesperson, Mr. Gerson Msigwa, gave the assurance while responding to misinformation circulating on social media that seeks to undermine the decision. He explained that the TAZARA railway, which was constructed between 1970 and 1975 through an interest-free loan from China and handed over to Tanzania and Zambia in 1976, has for many years faced serious operational challenges.

According to Mr. Msigwa, these challenges rendered the railway inefficient and unable to sustain itself, forcing the Government to inject substantial public funds to keep it operational.

He said that under the new agreement signed by Tanzania and Zambia with China through the China Civil Engineering Construction Corporation (CCECC), China will invest USD 1.4 billion, equivalent to more than TSh 3.45 trillion, to rehabilitate and modernise the railway infrastructure.

The investment will include upgrading railway infrastructure, construction of stations, procurement of new passenger trains, and the construction of the Kidatu Transshipment Joint Facility. The facility will enable cargo from the Central Railway Line, which operates on the Standard Gauge (MGR), to be transferred to the TAZARA railway, which uses the Cape Gauge.

Mr. Msigwa further explained that CCECC will rehabilitate the railway over a period of three years and subsequently operate it for 30 years. During the operational period, the company will pay the Government of Tanzania USD 30 million annually, equivalent to about TSh 75 billion. This marks a major shift from the current situation, where the Government of Tanzania alone spends more than TSh 28 billion every year to support TAZARA’s operations.

He noted that the investment is expected to significantly stimulate economic growth in both Tanzania and Zambia, as TAZARA is connected to a wider network of Cape Gauge railways stretching over more than 50,000 kilometres across the African continent.

Among the key benefits to Tanzania, Mr. Msigwa said, will be improved transportation of various minerals, including rare earth elements, cobalt, granite, coal and iron, as well as agricultural produce to SADC countries and to the Port of Dar es Salaam.

Mr. Msigwa called on Tanzanians to ignore critics who downplay the importance of the investment, stressing that the project is a major achievement made possible through the efforts of President Dr. Samia Suluhu Hassan. He recalled that the President discussed the investment with Chinese President Xi Jinping, who agreed to support the upgrading of TAZARA. He also noted that President Samia later addressed the Zambian Parliament, where she urged the Government of Zambia to endorse the railway’s rehabilitation.


The project has already entered the implementation phase, with the Prime Minister of China, Mr. Li Qiang, officially launching the TAZARA upgrade in Zambia.