Tanzania-Zambia Mafuta (TAZAMA) Pipeline Limited is considering expanding its business operations in Tanzania as the development of alternative regional transport infrastructure creates new competitive challenges for established petroleum supply routes in Southern Africa.
The proposed expansion emerged during discussions between the pipeline operator’s management and Tanzania’s Office of the Treasury Registrar (OTR), which oversees the government’s investments in state-owned enterprises. The meeting focused on TAZAMA’s business prospects, operational performance and opportunities to strengthen its commercial position amid changes in the regional energy transportation market.
TAZAMA’s Acting Managing Director, Ian Mutale, led the company’s delegation, which included Director of Corporate Services Mussa Mbura and Director of Operations and Engineering Dora Ernest. They met Treasury Registrar Nehemiah Mchechu in Dar es Salaam to discuss the company’s strategic direction and future investment opportunities.
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Lobito Corridor
A key issue raised during the discussions was the emergence of the Lobito Corridor, a major transport and logistics initiative expected to provide an alternative route for moving commodities and petroleum products across parts of Southern and Central Africa. The development could increase competition for existing transportation infrastructure, prompting TAZAMA to explore ways of diversifying its activities and identifying additional sources of revenue.
Tanzania has emerged as a potential market for the company’s expansion, supported by its existing infrastructure, operational experience and established presence in the country. The company is looking at opportunities to strengthen its activities while improving the commercial returns from its investments. Mchechu emphasised the need for government-owned companies to adopt commercially sustainable strategies, improve operational efficiency and identify investment opportunities capable of generating long-term economic value.
Established in 1968, TAZAMA operates a 1,710-kilometre pipeline connecting Dar es Salaam in Tanzania to Ndola in Zambia. The infrastructure was originally developed to transport crude oil to Zambia’s Indeni refinery, supporting the country’s petroleum supply requirements. In 2023, the company completed the conversion of the pipeline to transport refined petroleum products, particularly low-sulphur diesel, following changes in Zambia’s fuel supply arrangements.
TAZAMA is jointly owned by the two governments, with Zambia holding a 66.7% stake and Tanzania controlling the remaining 33.3%. The company has also faced growing pressure to modernise its infrastructure and improve transportation capacity. Previous investment proposals have included a planned new pipeline estimated at $2.5 billion, alongside efforts to secure approximately $400 million for upgrading existing facilities.
The proposed expansion comes as regional countries pursue alternative trade and logistics routes to improve access to international markets and reduce transportation bottlenecks. For Tanzania and Zambia, maintaining TAZAMA’s competitiveness will require continued investment in infrastructure, operational improvements and new commercial opportunities as the regional petroleum transportation landscape evolves.
