Highlights

• China Civil Engineering Construction Corporation will invest $1.4 billion to rehabilitate the 1,860-km TAZARA railway in exchange for a 30-year operating concession.
• The aim is to increase cargo volume six-fold to 2.4 million tons annually.
• The upgraded railway will facilitate exports of critical minerals like cobalt and copper from the resource-rich corridor.
• This development could potentially tighten China's control over global supply chains for electric vehicle batteries and green technologies.
• The deal has sparked local opposition concerns about sovereignty and transparency.
• Geopolitically, it intensifies U.S.-China competition for African infrastructure.
• Western nations are backing the rival Lobito Corridor railway project.

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A major China-financed revamp of the Tanzania–Zambia Railway Authority (opens in a new tab) (TAZARA) is underway, aiming to transform the aging 1970s-built rail line into a modern, profit-making trade corridor within three years.

Tanzania’s government spokesman Gerson Msigwa (opens in a new tab) announced that the partnership with China will “turn the railway into a regional growth engine” after decades of decline.

Originally constructed with Chinese support during the Cold War as a symbol of African-Asian solidarity (opens in a new tab), the 1,860-kilometer (1,160-mile) line is being thrust into a new era of sustainability and strategic importance.

Tanzania–Zambia Railway Authority

Under a new agreement signed in November, China Civil Engineering Construction Corporation (opens in a new tab) (CCECC) – a state-owned builder under the giant China Railway Construction Corp – will invest $1.4 billion to rehabilitate and upgrade TAZARA (opens in a new tab). In exchange, CCECC has secured a 30-year concession to operate the railway.

Officials project the revitalized line will generate around $30 million in annual revenue (up from steep losses today), marking a significant turnaround. Planned upgrades include new tracks, modern signaling systems, refurbished stations and trains, and expanded freight capacity. Annual cargo volume is expected to jump sixfold from about 400,000 tons to 2.4 million tons.

Trade and Resources Boost

Tanzanian authorities say the overhauled railway will unlock economic opportunities by speeding up exports of critical commodities. Minerals like cobalt and rare earth elements – vital for electric vehicle batteries and high-tech magnets – can move more efficiently to port.

This could bolster the global supply of such resources, which are in high demand for green technologies. The line will also lower transport costs for agricultural goods and manufacturers, and create jobs, all while bolstering Tanzania’s role as a regional logistics hub linked into the Southern African Development Community (opens in a new tab) network.

Local Debate and Western Implications

The landmark deal has sparked debate in Tanzania and Zambia. Leaders hail it as transformative and aligned with Tanzania’s Vision 2050 (opens in a new tab) goal of a modern, trillion-dollar economy. However, opposition figures question the wisdom of giving a Chinese company control of a strategic asset for three decades. They argue the $30 million annual fee (opens in a new tab) may be a poor trade-off and have raised concerns about sovereignty and transparency.

One Tanzanian opposition leader even blasted the project as “another corrupt project to sell the country”. Similar skepticism in Zambia has prompted calls to ensure the deal truly benefits the public and doesn’t become a “debt trap”.

Geopolitically, the TAZARA revival underscores China’s expanding infrastructure footprint in Africa, which is being watched warily by Western nations. The railway sits on a corridor rich in copper, cobalt, and rare earths – resources over which China already wields significant influence in global supply chains.

While the upgraded line could help diversify international access to these critical minerals, Beijing’s role in financing and running the corridor may also tighten its grip on resource flows, a strategic concern for the U.S. and allies. Western governments have begun backing alternative projects – for example, a U.S.-EU-supported Lobito Corridor railway linking the Congo–Zambia Copperbelt to an Atlantic port – to offer African nations another outlet for mineral exports and counter China’s dominance.

The dueling rail investments highlight intensifying competition for Africa’s minerals and trade routes.

Disclaimer: This news item originates from a Chinese state-owned media report. The information should be independently verified for accuracy.

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