The China Civil Engineering Construction Corporation (CCECC) is set to invest $1.4 billion in the Tanzania-Zambia Railway (TAZARA) through a 30-year concession. This investment aims to address logistical challenges faced by the railway, which is essential for copper exports from Central Africa amidst rising competition for minerals.
The China Civil Engineering Construction Corporation (CCECC) has announced an investment of $1.4 billion to upgrade the Tanzania-Zambia Railway (TAZARA) under a 30-year concession agreement. This development occurs amid increasing competition for Africa’s critical mineral resources, particularly copper and cobalt. TAZARA serves as a vital transportation route for copper exports from Central Africa, providing an alternative to the congested logistics in South Africa.
Bruno Ching’andu, CEO of TAZARA Authority, emphasized the need for the concession, stating, “The decision to grant a concession follows an in-depth evaluation of TAZARA’s challenges over the years, which necessitated urgent intervention.” This proactive measure aims to address the longstanding issues obstructing the railway’s efficiency.
China’s commitment to revitalizing TAZARA was reaffirmed last year, aligning with the United States’ concurrent support for the Lobito corridor in Angola, which poses a competitive alternative for transporting minerals from the region. The improvements to TAZARA are anticipated to enhance the transportation of essential natural resources from Africa to the global market.
The CCECC’s $1.4 billion investment in TAZARA represents a significant step towards improving rail infrastructure critical for mineral exports from Central Africa. This initiative highlights China’s strategic involvement in African development and its role in addressing logistical challenges in mineral transportation. The rivalry with U.S. investments in alternative corridors further underscores the geopolitical importance of Africa’s mineral resources.
Original Source: www.tradingview.com
