China Signs $1.4B Agreement to Upgrade TAZARA Railway, Boosting Zambia–Tanzania Trade Route
China has signed a $1.4-billion agreement with Zambia and Tanzania to modernise the TAZARA railway, a strategic transport corridor linking landlocked Zambia to the Indian Ocean.
Originally financed and built by China in the 1970s, the TAZARA railway has long served as a vital route for copper exports and fuel imports through Tanzania.
The upgrade is widely viewed as a significant counterweight to the U.S. and EU-backed Lobito Corridor, which aims to connect Angola with Zambia and the Democratic Republic of Congo.
The agreement was signed during Chinese Premier Li Qiang’s visit to Zambia—the first by a Chinese premier in 28 years—at a time when Zambia is emerging from a severe financial crisis.
“We want to work with Zambia to advance the cause of modernisation,” Li said during talks with Zambian President Hakainde Hichilema ahead of the signing ceremony.
A representative from China Railway Corporation confirmed that the modernisation works on the 1,860 km railway will include rehabilitation of stations, tracks, tunnels, bridges, and the construction of new infrastructure along the corridor.
The upgrade is expected to increase freight capacity from its current 100,000 tonnes annually to 2.4 million tonnes, significantly boosting regional trade.
Li’s visit reflects China’s push to deepen ties with copper-rich Zambia as the U.S. and Europe position themselves as alternative partners following Zambia’s progress on restructuring its $13.4-billion debt burden. China, Zambia’s largest official creditor with $5.7 billion owed, played a major role in the debt renegotiation.
On Monday, Zambia granted a licence to a joint venture with China’s Fujian Xiang Xin Corporation (FJXX) to develop a $1.1-billion oil refinery and energy complex, underscoring China’s expanding economic footprint in the country.
Chinese companies have invested approximately $6 billion in Zambia over the past two decades, according to the American Enterprise Institute—mostly in the metals sector.
According to China’s official Xinhua news agency, China, Zambia, and Tanzania will strengthen cooperation on the TAZARA corridor and promote intra-African trade.
The three nations will support China’s zero-tariff policy for African countries with diplomatic ties, encourage localised production and processing, and expand exports of high-quality African products to China.
The countries also plan to advance the development of industrial parks and economic zones along and around the railway line, reinforcing TAZARA’s role as a backbone of regional economic integration.
