Tazara projects $55.19 million in revenue for the 2024/25 fiscal year

Dar es Salaam. The Tanzania and Zambia Railway Authority (Tazara) has projected $55.19 million, which is equivalent to Sh143.49 billion in revenue collections in the 2024/25 fiscal year.

The budget forecast is $2.79 million (Sh7.254 billion) more compared to $52.40 million (Sh136.24 billion) approved by the board for the 2023/24 financial year.

In the 2024/25 fiscal year, the authority forecast was to collect $28.43 million (Sh73.92 billion) from freight, parcels, and passenger traffic.

Also, it is anticipated to garner $12.47 million (Sh32.42 billion) from shareholder subventions and $11.50 million (Sh29.9 billion) from other sources, including open access fees.

The 2024/25 fiscal year revenue projection was approved by the authority’s meeting of the board of directors during a recent meeting virtually held on Friday, July 26, 2024.

The meeting was chaired by Dr Ally Possi, who represented the Tanzanian Transport Ministry Permanent Secretary, Prof Godius Kahyarara.

The meeting was co-chaired by Mr Stephen Mbewe, who represented the Zambian Ministry of Transport and Logistics Permanent Secretary, Eng Fredrick Mwalusaka.

Board members in attendance include Prof Razack Lokina and Ms Rukia Shamte from Tanzania, as well as their Zambian counterparts, Ms Irene Lumbwe and Mr Sichizuwe Musokotwane.

A meeting communique signed by the authority’s corporation secretary, Marco N. S. Mabala, shared with The Citizen on Saturday, July 27, 2024, says the anticipated revenue would come from freight, parcels, passenger traffic, open access fees, and other non-operational activities.

“The Board reviewed and approved management's proposed annual budget. The targets for the financial year 2024/25 were set at 350,000 tonnes of freight and 3.43 million passenger traffic,” reads the communiqué in part.

According to the communiqué, the status report on the Tazara revitalization with the involvement of investors from the People’s Republic of China was briefed during the meeting.

“The Board noted the importance of expediting the process to conclude negotiations and have a Memorandum of Understanding signed by September 2024,” reads another part of the communiqué.

The Tazara renovation is forecasted to cost $1 billion, which is equivalent to Sh2.5 trillion, according to a refurbishment proposal prepared by China.

The railway, also known as Uhuru Railway or the Tanzam Railway, links the Dar es Salaam Port in eastern Tanzania with the town of Kapiri Mposhi in Zambia's Central Province.

In February this year, the Chinese Ambassador to Zambia, Du Xiaohui, revealed the figure after the two partner states decided to hand over the concession to run the railroad on a commercial basis to a Chinese state-owned company.