Tanzania, Zambia sign $80 million Tazara rescue pact
A section of the Tazara Railway line. Photo/LEONARD MAGOMBA
What you need to know:
Poor performance of Tazara as a result of frequent breakdowns, accidents, unstable labour atmosphere and lack of working capital to pay salaries and procure fuels and lubricants for the trains.
Tanzania and Zambia have agreed to provide the struggling Tanzania-Zambia Railway Authority (Tazara) with $80 million in the next 12 months.
At a meeting held in Lusaka last Friday, the Tazara Council of Ministers, which is the firm’s highest policy organ, resolved to make the funds available following months of low productivity and operational disruptions.
A statement issued at the end of the meeting said that poor performance of Tazara was a result of frequent breakdowns, accidents, unstable labour atmosphere and lack of working capital to pay salaries and procure fuels and lubricants for the trains.
The chairman of the Council of Ministers, Dr Harrison Mwakyembe, said the decision would boost the performance of Tazara for the benefit of both Tanzania and Zambia.
“We are delighted and greatly encouraged by the unprecedented commitment and support shown by our Zambian partners towards Tazara,” said Dr Mwakyembe, who is also Tanzania’s Minister for Transport.
He said that the two governments would not allow Tazara to collapse.
For his part Zambia’s Minister for Transport, Mr Yamfwa Mukanga, said that hard work and cooperation are key elements to reviving the performance of the railway.
“We all must put in what we can to revive this company. If we are all committed and work hard problems afflicting Tazara will get a lasting solution,” he said.
Mr Mukanga further said that since the two governments were showing serious commitment by heavily investing resources in Tazara, it would also be expected that management and employees would equally perform.
“Performance will no longer be an option. Stiff measures will be put in place to ensure that each and every position is monitored for performance so that those who are not performing are weeded out immediately,” he said.
Tazara acting Managing Director Ronald Phiri expressed hope that with the renewed commitment from the shareholders, Tazara would soon go back to levels of sustainability and stop depending on hand-outs from the two governments.
“We are delighted and convinced that once the funds from the shareholders are disbursed and the rehabilitation and procurement exercises are successfully executed, coupled with the smart partnerships we are currently working on, Tazara will no longer be dependent on bailouts,” he said.
“It is now a question of time before we go back to levels of sustainability and to a point of paying dividends to the shareholders.”
