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Home Infrastructure

Malawi Tanzania railway set to cut trade costs

FurtherAfrica by FurtherAfrica
October 5, 2026
in Development Finance, FA, Infrastructure, Investment, Macroeconomics & Policy, Malawi, Trade & Logistics
Reading Time: 3 mins read
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The proposed Malawi Tanzania railway would give the landlocked nation a direct rail link to Dar es Salaam, targeting transport costs that consume up to 60% of the country’s import and export expenses.

 

Malawi is advancing a phased northern railway corridor to Tanzania. Secretary for Transport and Public Works Bright Kumwembe confirmed that logistics costs account for roughly 60% of the country’s total trade expenditure. Those costs feed directly into import prices and ultimately reach consumers.

The proposed route would connect Malawi to the Tanzania-Zambia Railway network. It would also improve freight access to Dar es Salaam port. The project is currently at the feasibility-study stage.

Feasibility work comes first

Kumwembe described the railway as a flagship Central Corridor project, to be built in phases. The African Development Bank has committed resources to fund the feasibility study. That sequencing gives financiers a clearer entry point before construction decisions begin.

Malawi joined the Central Corridor in December 2023 as its sixth member state. Dar es Salaam already handles close to 70% of Malawi’s cargo, according to corridor data. Formalising a northern rail link would cement that relationship and create a new competitive corridor alongside Nacala and Beira.

However, the rail line alone will not suffice. Dependable border operations, cargo-handling capacity, rolling stock and maintenance systems all need to be in place for the route to function commercially.

What does this mean for investors?

A northern rail corridor could reshape Malawi’s freight economics. Kumwembe noted that transport costs range between 50% and 60% across the affected trade chain. A material reduction would lower prices for fuel, agricultural inputs and consumer goods across the country.

Malawi’s track record on rail execution provides important context. The southern network has faced long-running infrastructure damage and project delays. Those delays highlight execution risk, currency exposure and climate vulnerability — all factors that infrastructure investors must price into any northern-corridor proposal.

As one analyst framing holds: a landlocked country that cuts its logistics cost ratio by even ten percentage points gains a structural competitive advantage that compounds across every traded sector.

The AfDB-backed feasibility study will produce the next material signal. It should clarify route economics, capital requirements, operating assumptions and cross-border arrangements with Tanzania. Investors and corridor members alike should monitor the study’s findings, the financing structure it proposes, and the speed of commitment from participating governments.

Quick answers
What is the Malawi Tanzania railway project?

It is a proposed phased northern rail corridor that would connect Malawi to the Tanzania-Zambia Railway network and Dar es Salaam port, currently at the feasibility-study stage funded by the African Development Bank.

How much do transport costs affect Malawi’s trade?

According to Secretary for Transport Bright Kumwembe, transport costs account for between 50% and 60% of Malawi’s total import and export expenditure.

When did Malawi join the Central Corridor?

Malawi joined the Central Corridor in December 2023 as its sixth member state, gaining formal access to Dar es Salaam, which already handles close to 70% of the country’s cargo.

Related

Tags: afdbafrican development bankbeira corridorborder infrastructureBright Kumwembecargo handlingcentral corridorDar es Salaamdevelopment financeEast Africaexport costsfeasibility studyfreightimport costsinfrastructure financinginfrastructure investmentlandlocked countrieslogisticsMalawiNacala CorridorRailwayregional integrationrolling stockSouthern AfricaTanzaniaTanzania-Zambia Railwaytazaratrade competitivenesstrade corridorstransport costs
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Founded in 2015 FurtherAfrica is an online platform centralising news and content focusing on the development and growth story of the African continent.

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