China Civil Engineering Construction Corporation (CCECC) will invest $1.4 billion to upgrade the Tanzania-Zambia railway, improving copper export routes and bypassing South African logistical bottlenecks. CEO Bruno Ching’andu emphasized the need for urgent intervention in TAZARA’s challenges. The investment also marks a significant revival of China’s lending to Africa, following a decline in recent years.
The China Civil Engineering Construction Corporation (CCECC) is set to invest $1.4 billion to enhance the Tanzania-Zambia railway, a vital corridor for exporting copper from central Africa. Known as TAZARA, the railway will assist in circumventing logistical challenges in South Africa that have hindered copper and cobalt exports, according to a Reuters report.
Bruno Ching’andu, CEO of the TAZARA Authority, stated, “The decision to grant a concession follows an in-depth evaluation of TAZARA’s challenges over the years, which necessitated urgent intervention.” Earlier, China finalized an agreement to revitalize the 50-year-old railway last year, during a period when the United States was promoting a competing transport route from Angola.
Of the total investment, approximately $1 billion will focus on rehabilitating TAZARA’s rail tracks, while the remaining funds will be allocated for acquiring 32 new locomotives and 762 new wagons to increase operational capacity. This information was shared by Ching’andu in a report by Reuters.
The announcement was made at the Zambia International Mining and Energy Conference, where Ching’andu presented to investors. The 30-year concession will include three years dedicated to construction and 27 years for operation and maintenance, although negotiations between the parties are still ongoing.
This investment signifies a critical resurgence of China’s lending initiatives in Africa, which experienced a substantial decline in 2022, falling to a 20-year low after previously reaching $28.4 billion in 2016, as reported by Reuters.
In summary, the investment by CCECC to upgrade the TAZARA offers significant improvements for copper exports from central Africa while alleviating logistical issues faced in South Africa. This strategic collaboration underscores China’s renewed commitment to infrastructure development in Africa, amid competition from alternative transport solutions. The long-term concession reflects the importance of enhancing transit routes critical for the region’s mineral exports.
Original Source: www.miningmx.com
