China has signed a $1.4 billion agreement with Zambia and Tanzania to modernise the TAZARA railway, the Chinese Premier Li Qiang announced during his visit to Lusaka, according to Reuters.
The initiative will upgrade the 1,860-kilometre railway line, including stations, tracks, tunnels, and bridges, and aims to increase annual freight capacity from 100,000 tonnes to 2.4 million tonnes. State-owned China Civil Engineering Construction Corporation (CCECC) will lead the project under a 30-year concession, according to a CCECC press release.
Industry analysts say the revamp is expected to enhance regional trade infrastructure and strengthen China’s economic presence in Southern Africa, while Western-backed projects, such as the Lobito rail corridor, remain key competitors, as reported by Decode39.
The project is also expected to create employment opportunities in Zambia and Tanzania and attract further foreign investment in the logistics and transport sectors.
