Tanzania and Burundi Sign $2.15 Billion Railway Agreement with China

Tanzania and Burundi have signed a $2.15 billion agreement with Chinese firms to construct a railway for transporting nickel and other metals to Dar es Salaam, enhancing regional trade and meeting global demand for battery minerals.

Tanzania and Burundi have formalized an agreement with two Chinese enterprises to establish a railway that will connect both countries. This infrastructure project is primarily aimed at transporting metals, with a particular emphasis on the battery mineral nickel, to the port city of Dar es Salaam. The venture, valued at $2.15 billion, is set to be developed through the collaboration of China Railway Engineering Group and China Railway Engineering Design and Consulting Group, as stated by Tanzania’s Transport Minister, Makame Mbarawa, during the signing ceremony on Wednesday.

The railway agreement between Tanzania and Burundi represents a significant step towards enhancing regional trade and access to global markets for critical minerals. Nickel, a key component in battery manufacturing, has been increasingly in demand due to the global shift towards renewable energy and electric vehicles. The involvement of Chinese firms underscores China’s strategic interest in African infrastructure and resource development.

The signing of the railway agreement signifies a pivotal collaboration between Tanzania and Burundi, facilitated by Chinese investment. It is a strategic initiative aimed at improving metal transportation systems in the region, thus fostering economic growth and increasing access to essential battery minerals. This project aligns with broader global trends favoring green technologies and energy solutions.

Original Source: asia.nikkei.com