The Government of Tanzania has agreed to buy back a majority stake in Tanzania Railways Limited (TRL), previously held by the Indian state-run Rites Limited.
The government will buy back the 51% of the shares Rites holds in TRL, according to Reuters.
Rites offered to sell its shares to the Tanzanian Government when TRL was going through a financial crisis and frequent workers’ strikes over salary delays.
The Government of Tanzania has already asked the sectoral ministry to start negotiations with Rites for the acquisition of its shares.
The government said it also plans to negotiate with other investors to form another joint venture in TRL, after Rites gives back its shares.