By Jane Chanda
Zesco director of strategy and business development Fitzpatrick Kapepe, has revealed that the company raised $11 million in January 2024, falling short of its $15 million target from the ongoing emergency tariff, which aimed to help the power utility navigate the current power crisis.
And Tanzania-Zambia Railway Authority (TAZARA) managing director and chief executive officer, Bruno Ching’andu says an investment deal worth over $1.4 billion has been secured with China Civil Engineering Construction Corporation (CCECC) to revitalise TAZARA’s railway infrastructure and operations.
Speaking at the Zambia International Mining and Energy Conference (ZIMEC 2025) under the theme “Promoting Equitable Investment Partnerships, Intra-Regional Mineral Value Chains & Renewable Energy to Catalyse Zambia’s Sustainable Economic Growth,” in Kitwe yesterday, Kapepe said that the company faced a $4 million deficit in January 2024, and noted that Zambia would have struggled to navigate the severe electricity crisis without the support of the Southern African Power Pool (SAPP) and Independent Power Traders, who facilitated power imports to help bridge the 1300-megawatt deficit recorded in December last year.
“We faced a $4 million deficit in January 2024, and I must emphasise that without the support of the Southern African Power Pool (SAPP) and Independent Power Traders, who facilitated power imports, Zambia would have struggled to navigate the severe electricity crisis, particularly given the 1300-megawatt deficit we recorded in December last 2024,” he said.
Kapepe also announced that a private power producer completed feasibility studies and would begin producing 175 megawatts of power from waste generated in Lusaka.
He said he was also optimistic about Zesco’s stability, citing various interconnectors under development, including the Zambia-Tanzania-Kenya and Mozambique-Zambia interconnectors.
And speaking at the same event, Ching’andu said the investment aimed to transform TAZARA into a more efficient and reliable transport corridor, addressing the railway’s declining performance and restoring its operational efficiency.
He said the investment would be executed under a 30-year concession arrangement, marking a crucial step towards TAZARA’s transformation.
Although negotiations were still ongoing, Ching’andu expressed happiness with the progress made so far.
“As part of the agreement, CCECC will undertake key investments, including $1 billion for the full rehabilitation of TAZARA’s railway track infrastructure, enhancing safety, efficiency, and capacity,” Ching’andu said.
He said CCECC would also focus on immediate rehabilitation of the railway track, supplying rolling stock, covering operational costs through concession fees payable to TAZARA.
Ching’andu further highlighted that this partnership would not only restore TAZARA’s railway infrastructure but also position it as a key enabler of trade and economic growth between Tanzania and Zambia.
“This concession will mark the beginning of a new era for TAZARA. The investment from CCECC will not only restore our railway infrastructure but also position TAZARA as a key enabler of trade and economic growth between Tanzania and Zambia,” he said.
Ching’andu said the initiative was expected to enhance regional trade, reduce transportation costs, and improve connectivity across the Dar es Salaam corridor. With this significant investment, TAZARA is poised to play a vital role in promoting economic growth and development in the region.
