The Bilateral Agreement relating to the Tanzania-Zambia Railway, made between the two Governments on 29 th September 1993, forms the basis and foundation of the existence of TAZARA. This Agreement is given effect by the TAZARA Act, which provides for the governance of the Authority, the nature of business transactions and other matters related to the provision of services by the railway.
The two Governments of the United Republic of Tanzania and the Republic of Zambia hold the shares of TAZARA on a joint and equal basis. TAZARA operates as a statutory body established by the National Legislatures of both Tanzania and Zambia, through the TAZARA Act of1975, amended and replaced by the TAZARA Act of 7th July 1995.
The governance structure, as provided for by the TAZARA Act, comprises a Council of Ministers, Board of Directors and Management.
The Council of Ministers
The Council of Ministers is the supreme policy organ of TAZARA, comprising six (6) Ministers, three from each country respectively, i.e. the Ministries in charge of Transport, Finance and Trade/Commerce. The Ministers responsible for Transport are the Chairpersons of the Council in rotation between Tanzania and Zambia at the turn of each financial year, commencing on the 1 st July and ending on the 30th June the following year. The Council of Ministers is required to meet at least once every year.
The Board of Directors
The Board of Directors consists of six (6) Members, comprising the Permanent Secretaries responsible for Transport from each country, two members from each country with experience either in transport, commerce, industry or finance. The Directors of the Board are appointed by the Ministers of Transport from the respective countries. Except for the Permanent Secretaries who are permanent members, the Directors hold office for a period of three (3) years after which they may be eligible for re-appointment. The two Permanent Secretaries rotate the Chairmanship annually, at the beginning of each calendar year, i.e. 1 st January. The Board of Directors is required to meet at least four times a year.
The Executive Management Committee (EXCOM)
TAZARA’s Executive Committee (EXCOM) is responsible for leading the implementation of the Authority’s vision and for formulating strategies, subject to the approval of the Board of Directors. EXCOM drives and directs the day-to-day operations of all departments and ensures that the whole organisation works in coherent unison.
The Managing Director is the Chief Executive Officer of the Authority and, subject to the control of the Board, is directly responsible for the administration of the affairs of the Authority. The Deputy Managing Director assists the Managing Director in the day-to-day administration of the Authority. The TAZARA Act stipulates that the Managing Director shall be appointed from Zambia while the Deputy Managing Director shall be appointed from Tanzania. The railway is divided into two regions for administrative convenience, i.e. the Tanzania Region and the Zambia Region, with the national boundary forming the separation between the two regions as well. However, this separation is only for administrative convenience as the railway is a unitary organization with uniform standards.