Big Impact For Rail As World Bank Grant Set To Improve Transport And Trade Connectivity Between Zambia And Tanzania
To drive greater development and trade, the World Bank is supporting improvements in transport and trade connectivity along the Dar es Salaam Corridor between Zambia and Tanzania.
Whilst most elements of the Transport Corridors for Economic Resilience (TRACER) project focus on roads, and will be implemented by the National Road Fund Agency (NRFA) – the third component of the project is defined by the World Bank Project as: “The third component, sectoral capacity development and project management consists of following sub-components: (i) support to regional corridors management; (ii) development of a railway strategy for Zambia including an action plan for enhancing the institutional set-up, operational efficiency, and financial sustainability of Zambia Railways Limited (ZRL); (iii) studies and sectoral capacity building activities; and (iv) project management for the entire project, monitoring and evaluation.” World Bank Grant project page.
Zambia Railways and Tanzania-Zambia Railway Authority (TAZARA)
The project appraisal report notes that under the sub-components for the project, the development of a railway strategy for Zambia including an action plan for enhancing the institutional set-up, operational efficiency, and financial sustainability of ZRL, (US$5 million IDA equivalent). The strategy will address the roles of TAZARA and ZRL in offering integrated efficient railway services and help the government reach or exceed their goal of a 30 percent modal share for railways.
The strategy will consider recent developments for modernising TAZARA and the role rail is expected to play in supporting the green energy transition for mining in Zambia and the region.
Railways in Zambia, carrying approximately 15 per cent of the country’s freight and a portion of the Democratic Republic of Congo’s (DRC) trade, have the potential for a greater role due to their comparative advantages. Zambia boasts two main railway networks: the Kapiri Mposhi-Dar es Salaam network, operated by the Tanzania-Zambia Railway Authority (TAZARA), connecting Zambia with Tanzania; and the North-South network, which runs from the DRC to Zimbabwe through Lusaka, managed by Zambia Railways Limited (ZRL), a state-owned company. TAZARA, jointly owned by Tanzania and Zambia and operational for over 40 years, primarily transports copper consignments. Since 2018, it has engaged in an open access agreement with two private operators to enhance line utilisation and revenue. However, the majority of mineral transportation to smelters and ports is conducted by road, attributed to the inadequacy of railway infrastructure and rolling stock. In response, Zambia has set a national target to achieve a 30 per cent rail modal share for freight, actively seeking private investment and partnerships to upgrade its railway networks.
The Ministry of Transport and Logistics will lead the implementation of the third component, directly procuring and managing the railways and corridor-management activities and coordinating other activities under the component with the relevant ministries/ agencies.
Zambia’s Minister of Transport and Logistics, Hon. Museba Frank Tayali, has expressed his elation over the World Bank grant. He stated that the World Bank’s initiative is a game-changer for the Zambian economy, directing programmes towards the vision of transforming Zambia into a transport and logistics hub in the region.
Transport Corridors for Economic Resilience (TRACER) project
The six-year Transport Corridors for Economic Resilience (TRACER) project, backed by a $270 million International Development Association (IDA) grant, aims to improve the efficiency, connectivity, and climate resilience of key regional transport and trade corridors in Eastern and Southern Africa.
“TRACER is a significant commitment to regional trade and transportation. By focusing on strategic improvements and climate resilience, we hope this will pave the way for a more robust and sustainable economic future for Zambia and its neighbours,” said Achim Fock, Country Manager for Zambia. “The transport and logistics sector are expected to experience a boost from targeted activities aimed at institutional and sectoral capacity building.”
The project will benefit 2.5 million people in Zambia or approximately 13% of the population. This includes 500,000 direct beneficiaries within Zambia, with an additional 2 million people set to experience indirect advantages. The project’s reach extends beyond borders, positively impacting communities in Tanzania, the Democratic Republic of Congo, and Malawi.
The project will rehabilitate the Serenje-Mpika section of the corridor, developing a One Stop Border Post (OSBP) at Nakonde, and converting the existing corridor into a safety, mobility, automated, real-time traffic management (SMART) corridor. The project is also expected to address the challenges of inadequate trade and transport facilitation systems, missing and weak infrastructure links, and inefficient transport and logistics that the region frequently faces.
“TRACER is not just about infrastructure; it’s about people. From cargo owners to local communities, the ripple effects of improved transport corridors will be felt across the region, driving development, and facilitating trade in unprecedented ways,” said Aymen Ahmed Osman Ali, World Bank Senior Transport Specialist, and project team leader.
Related documents/ content of interest:
World Bank statement: https://www.worldbank.org/en/news/press-release/2024/02/20/new-world-bank-grant-to-improve-transport-and-trade-connectivity-between-afe-zambia-and-tanzania
World Bank Project Page: https://projects.worldbank.org/en/projects-operations/project-detail/P180801
Other documents of interest: https://documents.worldbank.org/en/publication/documents-reports/documentdetail/099013124091024437/bosib115c56da804a19bb31df94743849b1
Project appraisal report: https://documents1.worldbank.org/curated/en/099013124091024437/pdf/BOSIB115c56da804a19bb31df94743849b1.pdf