China President Xi Jinping, Tanzanian President Samia Suluhu Hassan and Zambian President Hakainde Hichilema on Wednesday jointly witnessed the signing of an MoU on the revitalization of the Tanzania-Zambia Railway Authority (TAZARA) railway.
The deal was signed in the Great Hall of the People at the onset of the Forum on China–Africa Cooperation (FOCAC) 2024 Summit in Beijing, China.
The project will see the refurbishing of the 1,860km rail line that forms the Central Corridor that was built between 1970-75 through an interest-free loan from China.
The railway provides transport route for cargo from Zambia’s copper and cobalt mines to the sea on Tanzania’s coast.
“China is willing to take this summit as an opportunity to make new progress in the revitalization of the Tanzania-Zambia railway, cooperate to improve the rail-sea intermodal transport network in East Africa, and build Tanzania into a demonstration zone for deepening high-quality China-Africa Belt and Road cooperation,” President Xi Jinping said, according to state media.
According to Central Corridor Transit Transport Facilitation Agency (CCTTFA), the deal is a significant development for the Central Corridor and the broader region.
“The revitalization of the TAZARA signals a renewed commitment to enhancing regional connectivity and trade. This move will boost economic activities by facilitating the efficient movement of goods and people between the two CCTTFA member States, and beyond,” the inter-governmental agency and Corridor Management Institution aimed at accelerating the development of the Central Corridor said on Wednesday.
It added that the involvement of high-level leaders from Tanzania, Zambia, and China underscores the strategic importance of the railway for intra-African trade and cooperation.
In February, China proposed to spend $1 billion to rehabilitate the rail line through a public-private partnership model. China Civil and Engineering and Construction would examine the engineering and economic cases for revitalising the railway,
The deal comes at a time US companies are proposing another railway to link Zambia with Angolo and Lobito port. The World Bank earlier this year approved $270 million in financing to improve connectivity between Tanzania and Zambia and boost regional trade.
