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Shore Africa > Hot news > Business > Zambia-Tanzania rail gets $1.4 billion boost for expansion
Zambia and Tanzania deal with China to modernize the TAZARA railway
BusinessTourism

Zambia-Tanzania rail gets $1.4 billion boost for expansion

Zambia and Tanzania signed a $1.4 billion deal with China to modernize the TAZARA railway, boosting trade, jobs, and cross-border connectivity in Africa.

Oluwatosin Alao
Last updated: September 30, 2025 4:20 pm
Oluwatosin Alao Published September 30, 2025
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Zambia and Tanzania deal with China to modernize the TAZARA railway
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At a Glance


  • Zambia, Tanzania, and China signed a $1.4 billion deal to modernize the TAZARA railway.
  • The upgrade includes new locomotives, wagons, and track rehabilitation to boost trade and travel.
  • The project is set to create jobs, cut transport costs, and strengthen regional connectivity.

The Tanzania-Zambia Railway Authority (TAZARA) has been a symbol of regional solidarity for almost 50 years.

Zambia, Tanzania and China have signed a $1.4 billion agreement to overhaul and expand the 1,860-kilometer railway line, marking one of the largest infrastructure investments in sub-Saharan Africa in recent years. 

The deal, announced by Zambia’s Ministry of Transport and Logistics, is set to modernize the line that runs from the Indian Ocean port of Dar es Salaam to Kapiri Mposhi in central Zambia.

Often referred to as the “Iron Backbone,” the railway has long served as a lifeline for landlocked Zambia and a key artery for cross-border trade.

A TAZARA locomotive at a railway station in Tanzania.

Modernization of a regional lifeline 

The expansion program will deliver 34 modern locomotives, 16 passenger coaches and 760 freight wagons.

At the same time, extensive track rehabilitation will upgrade safety and allow trains to run at higher speeds and handle greater cargo volumes.

Officials say the work will transform TAZARA into a faster, more reliable and competitive transport corridor for both passengers and freight. 

The railway was built in the 1970s with help from China and has long been a symbol of African unity.

The most recent contract includes the top Chinese engineering companies CCECC and CRCC.

Their participation shows a renewed commitment to technical excellence and working together for a long time.

“This is about regional integration, growth and shared prosperity,” said Zambia’s Transport Minister Frank Tayali.

His Tanzanian counterpart, Prof. Makame Mbarawa, added that the revitalization will create jobs and deliver benefits to communities along the line.

Zambia and Tanzania signed a deal with China to modernize the TAZARA railway

Boost for trade, jobs and tourism 

The changes are intended to help many areas grow.

Thousands of direct and indirect jobs will be created during construction, and better train service will mean more job opportunities in the future.

Logistics companies, manufacturers, and exporters will probably have lower shipping costs, which will make Zambian and Tanzanian goods more competitive on the world market.

Tourism could also benefit Faster, more comfortable trains open the door for rail-tourism packages, offering visitors an opportunity to explore the landscapes and cultural heritage of both countries.

Improved rail connectivity will also strengthen regional integration under the African Continental Free Trade Area, supporting the movement of minerals, agricultural produce and manufactured goods. 

Local communities are expected to gain too.

Better connectivity means improved access to markets, education and healthcare, while businesses in hospitality and retail could profit from rising passenger traffic.

China’s role and Africa’s rail renaissance 

The renewed partnership with China reflects a long history of cooperation.

Beijing’s engineering support was critical to TAZARA’s original construction, and today its firms bring new standards of project management, technology and skills transfer.

Their involvement underscores the value of international partnerships in executing large-scale African infrastructure projects. 

The TAZARA revitalization also comes amid a broader resurgence of rail across the continent.

Governments are looking to rail as a sustainable, safe and cost-effective alternative to congested roads and expensive air travel.

By investing in modern rolling stock and stronger infrastructure, Zambia and Tanzania are positioning themselves as leaders in this renaissance.

A passenger train crosses a bridge on the TAZARA railway linking Zambia and Tanzania.

A railway reborn

Industry professionals see in TAZARA’s revival a range of new business opportunities.

Logistics companies can expand multi-modal operations, travel firms can design adventure and heritage journeys, and local enterprises can leverage increased traffic to grow their markets. 

The idea also fits in with worldwide trends, such as the increase of eco-friendly transportation and the usage of internet platforms for booking and running businesses.

The message is obvious for investors, tourism operators, and logistics providers: it’s time to act immediately.

The TAZARA expansion is more than an infrastructure upgrade.

It is a commitment to regional integration, a chance to unlock new markets and a step toward shaping the future of African mobility.

With work set to begin, the railway once again finds itself in the spotlight—as a bellwether for what’s possible when vision, resources and regional ambition come together. 

The renaissance of African rail has left the station, and TAZARA is leading the way.

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TAGGED:China investmentEconomic GrowthRail infrastructureRegional tradeTourism in Africa
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