Tanzania is renewing efforts to develop its southern mining sector through the proposed Mtwara–Liganga railway project. The initiative aims to improve the transport of mineral resources and support industrial development.
Recently, the Tanzania Railways Corporation (TRC) signed a memorandum of understanding with Egyptian construction group Arab Contractors. The agreement covers preliminary studies and a feasibility assessment for a railway of approximately 1,000 kilometres. The line would connect Mtwara port on the Indian Ocean to Mbamba Bay on Lake Nyasa.
Furthermore, the studies will examine transport needs, construction costs, economic benefits and financing options. Arab Contractors is expected to finance the studies, while TRC will provide technical information and coordinate with relevant institutions. However, the agreement does not yet constitute a construction contract.
Meanwhile, the railway is closely linked to two major mining projects. Mchuchuma contains coal deposits and includes plans for a power plant. Liganga, on the other hand, holds significant iron ore resources intended to support steel production.
Despite their economic potential, both projects have experienced years of delays. In September 2026, the government announced that implementation should begin in 2027.
Additionally, the railway could facilitate the movement of raw materials and finished industrial products. It could also strengthen trade connections with neighbouring Malawi, Mozambique and Zambia through the Mtwara Development Corridor.
Nevertheless, financing remains a major obstacle. To address this challenge, the government is considering public-private partnerships to attract investment and support the project’s development.
Ultimately, the railway could help Tanzania transform its mineral resources into a stronger industrial base.
