THE Governments of Tanzania and Zambia, which are the two shareholders of the Tanzania-Zambia Railway Authority (TAZARA), have agreed to inject US $80 million into the operations of the railway firm in the next 12 months.
Of this amount, $9.20 million will be disbursed immediately to cater for two months outstanding employees’ salary arrears and working capital.
The move was announced during the TAZARA Council of Ministers meeting held in Lusaka, on Friday.
Also in attendance was Zambia’s Finance Minister, Alexander Chikwanda, Commerce, Trade and Industry Minister, Robert Sichinga, and the Tanzanian Deputy Minister of Finance, Adam Malima.
Others included the two permanent secretaries from the ministries of Transport in Tanzania and Zambia, Shabaan Mwinjaka and Charles Sipanje, respectively as well as the management team of TAZARA.
The meeting resolved to inject funds in the railway line following months of low productivity and operational disruptions due to various factors including frequent breakdowns, accidents, unstable labour atmosphere and lack of working capital to pay salaries and procure fuels and lubricants for the trains, all resulting in recurrent work stoppages.
Speaking during the meeting, the Tanzanian Minister of Transport, Harrison Mwakyembe, who is the current chairperson of the Council of Ministers, said the Tanzanian government was encouraged by the commitment of the Zambian Government towards TAZARA.
Dr Mwakyembe reiterated his government’s commitment to mobilise resources in order to ensure that TAZARA’s operations were boosted.
“We are delighted and greatly encouraged by the unprecedented commitment and support shown by our Zambian partners towards TAZARA.
“In line with the commitment shown by Zambia, I take this opportunity to reiterate our commitment as Tanzania and affirm that we are willing and ready to find resources in order to ensure that TAZARA’s operations are boosted to a level where we shall all be comfortable,” he said.
Dr Mwakyembe said in a statement made available to ZANIS in Lusaka yesterday that the two governments would not allow TAZARA to collapse.
Zambia’s Transport, Works, Supply and Communications Minister, Yamfwa Mukanga urged the two countries to enhance their commitment to turn around the company.
Mr Mukanga said there was also need for the two governments to find lasting solutions to challenges that the railway line was facing.
“We all must put in what we can so that this company is turned around. If we are all committed, this company will be turned around. We must find lasting solutions,” Mr Mukanga said.
He said 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 and measures will be put in place to ensure that each and every position is monitored so that those who are not performing are weeded out immediately,” he said. – ZANIS