December 2, 2024
Chicago 12, Melborne City, USA
China Economic Tanzania Zambia

China, Tanzania, and Zambia sign landmark $1 billion agreement to modernize Africa’s longest railway line

Johannesburg – In a significant move to boost Africa’s transportation infrastructure, China, Tanzania, and Zambia have entered into a $1 billion agreement to modernize the TAZARA railway, the continent’s longest rail line.

Stretching from Dar es Salaam, Tanzania, to Zambia’s Copperbelt region, this ambitious upgrade aims to restore the vital trade link and open new pathways for Zambia’s access to global markets.

The agreement, signed in Beijing in September 2024, underscores China’s deepening commitment to Africa’s economic development, with Chinese President Xi Jinping, Tanzanian President Samia Suluhu Hassan, and Zambian President Hakainde Hichilema attending the ceremony.

A historic project with high economic stakes

First proposed by China in early 2024, the modernization of the TAZARA railway addresses the deteriorating state of the 1,860-kilometer rail line, originally built in the 1970s with Chinese financial and technical aid.

When constructed, TAZARA represented a monumental symbol of solidarity, providing Zambia—a major producer of copper and cobalt—an independent trade route that bypassed colonial-era routes controlled by Rhodesia (now Zimbabwe) and apartheid South Africa.

The project, which cost approximately $3.19 billion in today’s currency, was China’s largest single foreign aid initiative at the time. Yet, decades of wear and limited maintenance have left much of the rail infrastructure in disrepair.

Recognizing its vital economic role, China’s Civil Engineering and Construction Corporation (CRCC), which originally constructed TAZARA, conducted a feasibility study in late 2023. The study emphasized the importance of modernization for increasing capacity, efficiency, and safety along this trade corridor.

Economic goals and projected benefits of TAZARA’S modernization

The revitalization plan aims to overhaul the railway with new tracks, advanced monitoring systems, and capacity improvements that will enable it to handle 30% more freight.

For Zambia, which relies on mining for about 70% of its exports, a more efficient rail line is crucial to sustaining and expanding its role in global copper and cobalt markets. Improved transport infrastructure is expected to reduce logistics costs and improve Zambia’s trade efficiency, further driving economic growth and job creation.

Additionally, the project aligns closely with China’s Belt and Road Initiative (BRI), reinforcing China’s commitment to enhancing global trade routes.

By positioning Dar es Salaam as a key port in the BRI network, the TAZARA railway aims to facilitate African trade with the Middle East, Asia, and Europe, positioning East Africa as a strategic trade hub.

TAZARA and the China-Africa cooperation agenda

The signing of the TAZARA modernization agreement coincided with the Forum on China-Africa Cooperation (FOCAC) 2024, a triennial summit that gathers leaders from over 50 African nations to discuss trade, security, and development.

This year’s agenda emphasized China’s commitment to African infrastructure, industrialization, and agricultural advancement. As one of FOCAC’s flagship projects, TAZARA’s revival is expected to support the African Continental Free Trade Area (AfCFTA) by enhancing trade across East and Southern Africa and reducing logistical barriers among neighboring countries.

Increased regional trade has the potential to lift intra-African commerce above the current rate of 16% of total trade on the continent—well below Europe’s 60%—and reduce Africa’s dependency on Western-controlled trade routes.

For Tanzania and Zambia, a stronger, reliable rail link could also mean less reliance on costly overland transport, fostering a more resilient local economy.

Sustainability and future outlook

The modernization of TAZARA incorporates sustainable infrastructure, including energy-efficient locomotives and renewable energy sources where feasible, aligning with Africa’s environmental goals.

The project’s design aims to reduce carbon emissions, promoting a greener model for rail transport in the region and ensuring that economic growth does not come at the expense of environmental sustainability.

Scheduled for completion in 2027, TAZARA’s upgraded rail line is anticipated to enhance trade and mobility across the region, serving as both an economic lifeline and a testament to the enduring partnership between China and Africa.

For China, the project demonstrates the country’s growing influence and commitment to African development, solidifying its strategic footprint in the region. For Tanzania and Zambia, it offers a pathway to greater economic independence, strengthened trade capabilities, and sustainable growth.

A new era for African trade and global relations

As the largest railway modernization project on the continent, the revitalized TAZARA railway could reshape the economic landscape of East and Southern Africa.

With its capacity and efficiency set to increase significantly, the line is poised to support Zambia’s and Tanzania’s export ambitions while fostering a more interconnected African market.

This project not only exemplifies China’s Belt and Road ambitions in Africa but also signals a transformative shift in the continent’s trade infrastructure, one that could elevate Africa’s role in the global economy for decades to come.

Translate »