Frank Tayali has clarified that the Zambian government will not receive any portion of the annual revenue generated by the Tanzania-Zambia Railway Authority (TAZARA) following the signing of a concession agreement with China Civil Engineering Construction Corporation (CCECC). The minister explained that under the agreement, CCECC, as the concessionaire, will pay TAZARA a fixed concession fee of $15 million per year, regardless of whether performance targets are met or exceeded. This arrangement is part of a 31-year concession signed last year by Zambia, Tanzania, and China to revitalise the TAZARA railway and improve operational efficiency.
Minister Tayali made the statement while responding to a question from Kabwe Central MP Chrizoster Halwindi about whether the government would receive revenue from TAZARA operations. He clarified that TAZARA will declare and pay dividends to its two shareholders, but the government itself will not directly benefit from annual revenue streams generated by the railway. The concession agreement is designed to enable CCECC to manage, operate, and invest in TAZARA’s infrastructure while providing a predictable financial return to the railway authority.
The fixed concession fee ensures financial stability for TAZARA, allowing it to focus on operational improvements and long-term sustainability. The revitalisation plan includes upgrading tracks, modernising stations, and improving cargo and passenger services to boost regional trade. By involving CCECC, the governments of Zambia and Tanzania aim to enhance efficiency, safety, and service reliability along the railway corridor. Minister Tayali emphasized that the concession is a strategic move to strengthen TAZARA’s role as a critical transport link while safeguarding shareholder interests and promoting regional economic integration.