China, Tanzania, and Zambia Seal $1.4 Billion Deal to Revamp TAZARA: What It Means for Trade and Geopolitics

On Monday, China, Zambia, and Tanzania signed a $1.4 billion agreement to refurbish the historic Tanzania-Zambia Railway (TAZARA). This landmark deal aims to modernize the railway infrastructure, purchase new locomotives, passenger coaches, and wagons, and restore a vital transport artery that has long been underperforming.

The rehabilitation of TAZARA is not just about fixing a railway. It represents a broader intersection of trade, geopolitics, and regional integration in Southern and Eastern Africa.

Historical Context

TAZARA was originally constructed in the 1970s with Chinese financing and expertise, at a time when Zambia sought an alternative export route for its copper that bypassed apartheid South Africa and politically hostile Rhodesia (now Zimbabwe). For decades, the railway symbolized China’s solidarity with Africa during the Cold War.

However, over time, poor maintenance, inadequate funding, and competition from road transport eroded its efficiency. Once a strategic lifeline, TAZARA has been operating at a fraction of its capacity, failing to fully support Zambia’s copper exports or Tanzania’s regional trade ambitions.

Economic Implications

Boosting Copper Exports

Zambia, Africa’s second-largest copper producer, relies heavily on exporting the mineral to global markets, especially China. The refurbishment of TAZARA will provide a faster, cheaper, and more reliable route to the Port of Dar es Salaam, reducing dependence on congested road networks.

Regional Trade Integration

The railway links Zambia to Tanzania’s coast, but its impact goes beyond the two countries. It has the potential to serve as a corridor for the Democratic Republic of Congo (DRC), which produces more than 70% of the world’s cobalt and significant copper output. Revamping TAZARA could transform it into a strategic trade artery for the broader Southern African region.

Job Creation and Industrialization

The deal includes procurement of locomotives and wagons, which will stimulate local supply chains, create jobs in transport and logistics, and potentially encourage the establishment of maintenance and repair industries in both Zambia and Tanzania.

Geopolitical Dimensions

China’s Expanding Influence

China’s continued involvement in TAZARA reflects its long-term strategic interests in Africa. Beyond trade, Beijing is strengthening its geopolitical ties by investing in infrastructure that supports African exports while deepening reliance on Chinese financing and technology.

Regional Connectivity vs. Dependency

While the railway promises economic benefits, it also underscores concerns about debt sustainability. A $1.4 billion injection requires careful management to avoid pushing Tanzania and Zambia into financial over-dependence on China.

Strategic Leverage

Control of critical infrastructure like railways enhances China’s leverage in Africa. The refurbished TAZARA could become part of Beijing’s broader Belt and Road Initiative (BRI), tying African resources more directly into global supply chains dominated by China.

Challenges Ahead

Sustainability of Operations  

Past failures stemmed from poor management and insufficient revenue generation. Without reforms in governance and efficiency, history could repeat itself.

Competition from Roads and Other Railways

Trucking companies and alternative rail routes remain competitive. TAZARA must offer cost advantages to attract consistent cargo volumes.

Balancing Local and Global Interests

Ensuring that the railway benefits ordinary citizens through affordable passenger services and local trade will be crucial in maintaining public support.

Conclusion

The $1.4 billion China-Tanzania-Zambia deal to refurbish TAZARA is more than an infrastructure upgrade; it is a strategic repositioning of Southern Africa’s trade routes. For Zambia, it secures copper export competitiveness. For Tanzania, it reinforces Dar es Salaam’s role as a gateway to regional trade. For China, it deepens its influence and ensures steady access to Africa’s mineral wealth.

The challenge lies in execution: ensuring that the refurbished railway is not only efficient but also financially sustainable, regionally inclusive, and strategically balanced. If done right, TAZARA could once again become a symbol of African resilience and global partnership this time in the 21st century trade and geopolitics landscape.