The TAZARA concession represents one of the most significant current railway rehabilitation programmes in Southern and East Africa, combining more than US$1.4 billion in planned investment with the procurement of 32 locomotives and 762 wagons. Accelerating implementation will be critical if the railway is to rebuild freight capacity and recover traffic lost to road transport.
The project also extends beyond railway rehabilitation. Zambia and Tanzania increasingly view TAZARA as the backbone of a wider economic corridor capable of supporting trade, investment and new business activity along the route, giving progress on the concession broader regional significance.
- TAZARA signed a public-private partnership concession agreement with China Civil Engineering Construction Corporation on 29 September 2025 covering rehabilitation, modernisation and operation of the freight component of the railway.
- The concession provides for investment exceeding US$1.4 billion, including infrastructure rehabilitation and new locomotives and wagons.
- TAZARA is to receive a fixed concession fee of US$15 million a year regardless of the concessionaire's financial performance and is to declare and pay dividends to the Zambian and Tanzanian governments.
- CCECC is to procure 32 new locomotives and 762 new wagons.
Zambian President Hakainde Hichilema says the revitalisation of the Tanzania-Zambia Railway Authority (TAZARA) railway by Zambia, Tanzania and China must now be accelerated.
The TAZARA railway and wider transport corridor have been identified as critical to improving regional connectivity, trade and investment between Tanzania and Zambia, with renewed emphasis being placed on advancing the railway project and expanding economic activity along the corridor.
The project is being viewed not only as a railway development but as part of a broader growth corridor that could support new businesses and investment opportunities in areas connected to the rail network.
On 29 September 2025, TAZARA signed a Public-Private Partnership concession agreement with China Civil Engineering Construction Corporation (CCECC) to rehabilitate, modernise and operate the freight component of the railway.
The concession provides for investment exceeding US$1.4 billion, including the rehabilitation of railway infrastructure and the acquisition of new locomotives and wagons.
Hichilema, who has won a second term, told China's Special Envoy, Xian Hui, that Zambia would like to see more traction on the TAZARA project, stressing the importance of working with China in partnership to develop both the railway and businesses along the corridor.
The discussions also highlighted the potential for increased Chinese investment in development projects linked to the transport corridor.
Xian Hui also met Tanzanian President Samia Suluhu Hassan in Lusaka during Hichilema's inauguration, where they exchanged views on the TAZARA railway project.
China Nonferrous Mining Corporation (CNMC) is also involved in projects related to the revitalisation of TAZARA.
Under the concession agreement, TAZARA is expected to receive a fixed concession fee of US$15 million a year from CCECC, regardless of the concessionaire's financial performance. TAZARA is also expected to declare and pay dividends to the Zambian and Tanzanian governments. However, the ministry disclosed that the governments will not receive any portion of TAZARA's annual concession revenue.
CCECC is also expected to procure 32 new locomotives and 762 new wagons, increasing freight and passenger transport capacity.
Written by Chamwe Kaira for Railways Africa Magazine.
