Tanzania and Burundi Collaborate with China on New Railway Project
Tanzania and Burundi are collaborating with Chinese firms to develop a railway connecting the two countries for mineral transport, primarily slating nickel for transit to Dar es Salaam. The $2.15 billion project will be financed by the African Development Bank and aims to enhance trade capabilities in the region. This investment raises concerns regarding debt and dependence on foreign funding, reflecting broader trends in Chinese investment across Africa.
Tanzania and Burundi have entered into a partnership with Chinese firms to construct a railway that will connect the two nations. This project aims to streamline the transportation of various metals, including nickel, to the port of Dar es Salaam, enhancing trade opportunities for the region. Announced at a signing ceremony by Tanzania’s Transport Minister Makame Mbarawa, this $2.15 billion endeavor will be developed by the China Railway Engineering Group Ltd and the China Railway Engineering Design and Consulting Group.
Funding for the project will be facilitated by the African Development Bank, as indicated by Tanzania’s Finance Minister Mwigulu Nchemba. The planned railway will span 282 kilometers (approximately 175 miles) and is projected to transport three million metric tons of minerals annually, supporting economic activity in both countries. China’s investment strategy in Africa, driven by initiatives like the Belt and Road, has led to substantial infrastructure enhancements across the continent.
Historically, China has emerged as Africa’s largest trading partner, engaging in major deals involving roads, railways, and power plants. Earlier this year, the China Development Bank sanctioned a loan of approximately $254.76 million to Nigeria to assist in constructing a vital railway. In 2023, President Xi Jinping pledged nearly $51 billion to support further development in Africa, focusing on infrastructure projects and job creation.
Following a period of reduced investments, Chinese funding in Africa experienced a notable resurgence last year, with lenders approving around $4.61 billion in loans, marking a significant increase since 2016. Since the year 2000, China has invested about $182.28 billion into African projects, reinforcing its status as the continent’s largest creditor. However, alongside these investments, there are growing concerns regarding rising debt, economic dependence, and the environmental ramifications of large-scale infrastructures.
The article discusses a significant railway project initiated by Tanzania and Burundi in collaboration with Chinese firms to enhance mineral transportation to Dar es Salaam’s port. This initiative is part of China’s broader strategy to invest in African infrastructure, raising questions about potential long-term effects on the economies involved, including debt sustainability and environmental impact. Recent commitments and funds pledged by Chinese authorities signal a renewed focus on Africa’s infrastructural development, highlighting both the economic opportunities and the risks involved.
The construction of a railway linking Tanzania and Burundi symbolizes a major step in enhancing the mineral transport capabilities in the region. This $2.15 billion project, supported by the African Development Bank and Chinese firms, is expected to significantly improve trade logistics. However, the extensive investment from China poses questions about long-term economic independence and environmental considerations, thereby necessitating careful management of these developments.
Original Source: africa.businessinsider.com
