China to Invest $1.4 Billion in Tanzania-Zambia Railway Upgrade

China’s CCECC will invest $1.4 billion to upgrade the Tanzania-Zambia railway (TAZARA) under a 30-year concession. This move addresses critical logistical issues in mineral exports from central Africa amidst growing competition for resources, particularly against U.S. investments in rival transport corridors.

The China Civil Engineering Construction Corporation (CCECC) is set to invest $1.4 billion in the upgrade of the Tanzania-Zambia railway, commonly referred to as TAZARA. This significant investment will take place under a 30-year concession agreement, as confirmed by the railway’s operator on Thursday. The project comes in response to the growing competition for vital minerals in Africa.

TAZARA plays a critical role in facilitating copper exports from central Africa, providing an alternative route that alleviates logistical challenges experienced in South Africa, which have hindered copper and cobalt shipments. Bruno Ching’andu, CEO of TAZARA Authority, emphasized the necessity of this intervention, stating that “the decision to grant a concession follows an in-depth evaluation of TAZARA’s challenges over the years, which necessitated urgent intervention.”

Last year, China pledged its support for revitalizing the longstanding TAZARA railway. This commitment is contrasted by the United States strengthening a competing transport corridor known as Lobito, which stems from an Angolan port, indicating a significant geopolitical landscape concerning Africa’s mineral transportation.

In conclusion, the $1.4 billion investment by CCECC in the TAZARA railway embodies China’s strategic commitment to enhancing infrastructure in Africa. This upgrade is essential for improving mineral exports, particularly copper and cobalt, and reflects shifting dynamics in global trade routes as the competition for Africa’s resources intensifies. The collaboration marks a pivotal response to the logistical challenges faced by mineral exporters in the region, reaffirming the importance of TAZARA in the African transport network.

Original Source: www.tradingview.com