Game-Changing upgrades set to transform African trade
In a groundbreaking partnership aimed at transforming African trade infrastructure, China, Tanzania, and Zambia have finalized a $1 billion agreement to revitalize the TAZARA railway, the longest rail line on the continent. This modernization initiative will update the 1,860-kilometer line that links Dar es Salaam, Tanzania, to Kapiri Mposhi in Zambia’s Copperbelt, opening up critical trade pathways for Zambian minerals to reach global markets.
The deal, formalized in Beijing in September 2024, reflects China’s deeper engagement in African infrastructure, with the signing ceremony attended by Chinese President Xi Jinping, Tanzanian President Samia Suluhu Hassan, and Zambian President Hakainde Hichilema.
In tandem with the TAZARA project, Angola’s Lobito Corridor is emerging as a key route for exporting mineral resources from the Democratic Republic of the Congo (DRC) and Zambia, offering a crucial alternative to the traditional trade routes that have historically depended on South Africa.
Together, these projects underscore the strategic realignment of African trade routes, aiming to position the continent as a stronger player in global trade networks.
Initially constructed in the 1970s with Chinese financial and technical assistance, the TAZARA railway has deteriorated significantly due to insufficient maintenance.
Originally costing around $3.19 billion in today’s dollars, it was, at the time, China’s largest single foreign aid project, designed to enable Zambia to bypass colonial-era trade routes. However, decades of wear have left the line inefficient, with only 60% of its capacity operational.
The new $1 billion modernization project aims to increase the railway’s cargo capacity by up to 30% by overhauling the tracks, upgrading signaling systems, and introducing modern, energy-efficient locomotives.
Once completed, the updated railway is expected to handle up to 3.5 million tons of freight annually, facilitating the export of Zambia’s copper and cobalt reserves—minerals that accounted for nearly 70% of the country’s $8 billion export revenue in 2023.
The TAZARA project aligns with China’s Belt and Road Initiative (BRI), a strategic move that enhances China’s influence across key global trade routes. Dar es Salaam, as an East African port, is strategically located to serve as a major transshipment hub for goods moving between Africa, Asia, and the Middle East.
For Tanzania and Zambia, this project promises to boost their economic growth by reducing logistics costs, increasing trade efficiency, and supporting regional supply chains.
By comparison, the African Continental Free Trade Area (AfCFTA), which came into effect in 2021, has the potential to lift intra-African trade from its current 16% of total trade to levels closer to the European Union’s 60% internal trade.
With modernized infrastructure, the TAZARA line could play a significant role in this growth, creating new economic opportunities across East and Southern Africa.
In parallel with the TAZARA upgrade, the Lobito Corridor—a transportation route linking the DRC and Zambia to the Angolan port of Lobito on the Atlantic Ocean—is gaining momentum as an essential trade link.
The corridor includes both rail and road networks, enabling copper-rich regions in the DRC and Zambia to bypass overland routes through South Africa.
For the DRC and Zambia, this route offers a faster, more cost-effective pathway to international markets. Exporters estimate a 20% reduction in transport costs via the Lobito Corridor compared to traditional southern routes.
With its direct access to the Atlantic, Lobito is positioned to serve trade routes connecting to Europe and the Americas, reducing reliance on eastern ports and opening up competitive advantages for African exporters.
In 2023 alone, the DRC exported $12 billion worth of minerals, with copper and cobalt leading the way. These two countries produce over 70% of the world’s cobalt, a mineral crucial to the growing electric vehicle market. The Lobito Corridor, expected to increase capacity to 4 million tons per year by 2026, is set to become an indispensable route, fueling the expansion of Africa’s mining and resource industries.
Both projects are designed with sustainability in mind, incorporating energy-efficient systems and renewable energy sources wherever possible. The modernization of TAZARA includes plans for solar-powered signaling and efficient electric locomotives, aligning with Africa’s long-term environmental goals and contributing to reduced carbon emissions.
The Lobito Corridor, similarly, emphasizes sustainability, using energy-efficient transport solutions to ensure minimal environmental impact.
For China, these initiatives expand its geopolitical footprint in Africa and deepen its economic ties with key resource-rich nations, while offering African countries a viable alternative to Western-dominated trade routes. For Tanzania, Zambia, and Angola, the modernization of these corridors signals a new era of economic self-sufficiency and regional integration.
With the TAZARA upgrade expected to be completed by 2027 and the Lobito Corridor expanding in capacity over the coming years, these projects mark a turning point for African transportation infrastructure.
They reflect a strategic vision for the continent, one that embraces greater regional integration, more sustainable trade routes, and reduced dependence on external powers.
As Africa’s transportation network transforms, the continent stands poised to unlock unprecedented economic potential, fostering a stronger, more competitive position in the global market.
