Zambia has raised over K18 million to settle part of the salary arrears of employees of the Tanzania Zambia Railway Authority (TAZARA).
Transport and Logistics Minister Frank Tayali said the money will cover around three months from December 2021, January and February 2022.
In a statement by the ministry’s public relations officer, Ndubi Mvula, Tayali said the government has also released about $3.3 million to recapitalize TAZARA.
He said the government’s strategic decision was largely aimed at turning TAZARA into a stand-alone company.
“The government has raised K18,008,027.90 million, through the Ministries of Finance and National Planning and Transport and Logistics, which is required for the release of part of the wage bands of TAZARA employees,” he said.
“The money will help the company clear the backlog when the Chambeshi Bridge rehabilitation works are completed and possibly improve local tax revenue.”
Tayali recalled that at the beginning of this year, the government allocated 1.9 million dollars for the rehabilitation of the Chambeshi railway bridge.
He said the bridge should be fully operational again by July 2022.
“The ministry has been working around the clock to find resources in conjunction with the Ministry of Finance and National Planning,” Tayali said.
“Government released about $3.3 million as recapitalization for TAZARA to enable the company to repair various parts of the rolling stock to improve its business.”