The China Civil Engineering Construction Corporation (CCECC) will invest $1.4 billion in upgrading the Tanzania-Zambia railway (TAZARA) under a 30-year concession, crucial for copper exports from central Africa and to bypass logistical bottlenecks in South Africa. TAZARA’s revival was deemed necessary due to operational challenges, as stated by CEO Bruno Ching’andu.
The China Civil Engineering Construction Corporation (CCECC) has announced a substantial investment of $1.4 billion to upgrade the Tanzania-Zambia Railway Authority (TAZARA) under a 30-year concession agreement. This initiative emerged on Thursday amid escalating competition for critical minerals in Africa, particularly copper and cobalt.
TAZARA serves as a vital corridor for copper exports originating from central Africa, providing a critical route that alleviates logistics bottlenecks often faced in South Africa, which can impede the export of these essential minerals.
Bruno Ching’andu, CEO of the TAZARA Authority, remarked, “The decision to grant a concession follows an in-depth evaluation of TAZARA’s challenges over the years, which necessitated urgent intervention.” This investment marks a significant step towards the resurgence of the railway, which has faced numerous operational challenges.
China’s commitment to support TAZARA’s revitalization aligns with its broader strategy for infrastructure development in Africa, particularly as the United States expands its investment in alternative transport corridors, such as the Lobito transport corridor, which connects to an Angolan port.
In conclusion, the CCECC’s investment in the Tanzania-Zambia railway symbolizes a strategic move to enhance mineral transport routes in Africa amidst growing competition for resources. The revitalization of TAZARA is crucial not only for local economies but also in addressing logistical challenges in the region.
Original Source: www.tradingview.com
