Browsing: TAZARA

• New investment in Tanzania’s railways sector is expected to directly benefit nearly 900,000 people and indirectly impact an estimated 3.5 million.
• Tanzania operates two railway systems, totaling 3,682 km in length.

Tanzania railway sector is poised for immense growth as the World Bank poured significant funding by approving $200 million in financing from the International Development Association (IDA) which is a part of the bank.

According to available information from the World Bank statement made on Friday, the bank said the financing for the second phase of the Tanzania Intermodal and Rail Development Project (TIRP-2) will improve safety, climate resilience, and operational efficiency along this railway segment.

Read also: AfDB approves $696.4M financing for Tanzania-Burundi-DRC railway project

Tanzania railway plan anchored on Dar- Morogoro SGR

The funding comes a few weeks after Tanzania Railways Corporation (TRC) began its inaugural trial journey of the electric Standard Gauge Railway (SGR) train …

ZAMBIA and Tanzania last week agreed to revamp and recapitalize the TAZARA railway and expand the TAZAMA pipeline following a change in objectives from the transportation of crude oil to finished products.

Tanzanian President Samia Suluhu Hassan said the agreement to revive TAZARA was reached when she held talks with visiting Zambian President Hakainde Hichilema at State House in the commercial capital Dar es Salaam.

According to Zambia Daily Mail, TAZARA was constructed as a turnkey project between 1970 and 1975 through an interest-free loan from China, with commercial operations starting in July 1976, covering 1,860 kilometres from Dar es Salaam in Tanzania to New Kapiri Mposhi in Zambia.

President Hassan added that the two leaders have also agreed to work closely in promoting trade and investment through the revival and renovation of key joint post-independence infrastructure projects that were built to link the two nations, including the Tanzania-Zambia Crude …

Reallocation of government financing is essential in unlocking infrastructure potential. It eliminates the crowding out of private-sector funding, as government investing in most commercially viable assets is crucial to those with lower returns (Mckinsey). 

Tanzania is one of the nations that leverages its internal revenue to fund its projects, including iconic bridges in the nation’s commercial capital and several roads, buildings and facilities across the country.  

Kenya is another excellent example of a solution offered by Mckinsey as the government prioritised investment in municipal infrastructure as part of a drive to provide 500,000 new affordable housing units in five years.  

Ethiopia is moving similarly, whereby it has prioritised investment in industrial development zones to attract global apparel manufacturers.  …

Zambia – Tanzania relations

It’s no secret that Zambia’s economic situation has gone from bad to worse over the years. In mid-2018 the country’s debt reached 9.4 billion USD and has become worse as we stand in 2020, in just a period of 2 years (Ofstad & Tjønneland, 2019).

In May 2020, the Tanzania-Zambia borders were closed due to the pandemic, however, the reopening of trade between the two countries seems to be normalized as nations are now gung-ho in pushing cross border trade.

Zambia’s Economic Snapshot

source: tradingeconomics.com

The graph above shows Zambia’s development from the year 1990 to the year 2019. The country’s economy improved from the year 2011 to the year 2018, as one can see the national GDP output increasing as a result of its healthy inflation rate. In 2019 the country’s economy took a dive and started to falter given that it’s inflation rate …

While its Standard Gauge Railway project is commencing at the speed of light to give Tanzania its first electric powered train, the country is also making efforts to revive its once closed internal railway line for locomotives.

Last year, Tanzanians joy rode the reopened passenger and cargo train from the commercial port city of Dar es Salaam to Moshi, home of Africa’s highest mountain, the Kilimanjaro.

New locomotives were bought and engines imported, the train quickly became a national hit and immediately eased the pressure that was on road transport. Government officials led the excited public in trying out the train that has first, second and third class levels offering all te amenities that a traveler would need.

The revival of freight operations on the 438 km rail stretch was marked by a ceremony that was attended by Prime Minister Kassim Majaliwa at the destination of the train in Moshi.…