Tanzania-Zambia Oil Pipeline Eyes Expansion as Lobito Corridor Raises Competition

The Tanzania-Zambia Mafuta (TAZAMA) Pipeline discussed strategic positioning and possible expansion in Tanzania with the Office of the Treasury Registrar (OTR). The talks come at a time when the regional petroleum transportation market is being influenced by alternative transportation infrastructure, such as the Lobito Corridor, with potential implications for the company’s future business.
Mchechu OTR in talks with TAZAMA

Tanzania-Zambia Mafuta (TAZAMA) Pipeline Limited discussed its strategy and possible expansion in Tanzania with the Office of the Treasury Registrar (OTR).

The talks took place on 9 November 2026 in Dar es Salaam, when the Treasury Registrar, Nehemiah Mchechu, received TAZAMA’s Zambia-based Acting Managing Director, Ian Mutale, on an introductory visit.

The OTR and TAZAMA discussed the company’s strategic direction, its business opportunities, and the need to strengthen its competitiveness in the regional energy market.

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Mutale was accompanied on the visit by TAZAMA’s Director of Corporate Services, Mussa Mbura, and its Director of Operations and Engineering, Dora Ernest.

Mchechu emphasised the importance of managing public investments through a strategic shareholder approach that prioritises commercial sustainability, business growth, and value creation.

For his part, Mutale outlined TAZAMA’s strategic positioning in the regional petroleum transportation market, drawing attention to alternative transportation infrastructure, such as the Lobito Corridor, and its potential implications for the company’s future business.

Mutale observed that Tanzania offered a natural area for potential expansion, given that TAZAMA already has an operational foundation there, unlike markets where it would need to establish infrastructure and business relationships from the ground up.

TAZAMA Pipeline Operations

The TAZAMA pipeline, commissioned in 1968, runs for 1,710 kilometres between Dar es Salaam and Ndola in Zambia and was designed to carry 1.1 million tonnes of oil per year.

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According to the operator, TAZAMA converted the line from pumping crude oil to pumping finished product, specifically low-sulphur gas oil, in March 2023.

Through OTR, the Government of Tanzania holds a 33.3% stake in the company, while the Government of Zambia owns the remaining 66.7%.

The two governments have also previously discussed building a new USD 2.5 billion oil pipeline, while the operator has earlier sought USD 400 million to upgrade the existing line.

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