The China Civil Engineering Construction Corporation will invest $1.4 billion in the Tanzania-Zambia railway via a 30-year concession to improve transport efficiency for copper exports as competition for Africa’s minerals intensifies. TAZARA will enhance logistics by bypassing South African bottlenecks, following an evaluation by the TAZARA Authority.
The China Civil Engineering Construction Corporation (CCECC) has announced a significant investment of $1.4 billion to enhance the Tanzania-Zambia Railway, known as TAZARA, through a 30-year concession. This initiative aims to improve transportation efficiency as competition for Africa’s essential minerals intensifies, particularly in copper exports from Central Africa.
TAZARA serves as a crucial transport route that allows for the bypassing of logistical hindrances prevalent in South Africa, which have previously impeded the exportation of copper and cobalt. Bruno Ching’andu, CEO of TAZARA Authority, highlighted that this decision arises from a thorough assessment of the railway’s ongoing challenges that demands urgent remedial action.
Last year, China pledged to support the revitalization of TAZARA, coinciding with the United States’ investment in an alternative transport option for mineral exports, the Lobito corridor, which is based out of an Angolan port. This strategic commitment underscores the growing geopolitical competition over African mineral resources.
In summary, the CCECC’s $1.4 billion investment in the Tanzania-Zambia railway marks a pivotal development in enhancing transport infrastructure for critical mineral exports from Africa. This initiative seeks to address longstanding operational challenges and reflects broader competition between global powers for access to Africa’s rich mineral resources.
Original Source: www.tradingview.com
