The China Civil Engineering Construction Corporation will invest $1.4 billion to upgrade the Tanzania-Zambia Railway (TAZARA) under a 30-year concession. This development aims to improve logistics for copper and cobalt exports, especially in light of competition over Africa’s resources. The CEO of TAZARA noted the necessity of this investment due to ongoing challenges the railway has faced.
The China Civil Engineering Construction Corporation (CCECC) has announced a substantial investment of $1.4 billion for a 30-year concession aimed at upgrading the Tanzania-Zambia Railway (TAZARA). This development comes in response to the growing competition for Africa’s essential minerals. The railway serves as a vital corridor for copper exports from central Africa, helping to alleviate logistics issues in South Africa that have hindered copper and cobalt trade.
Bruno Ching’andu, the Chief Executive Officer of TAZARA Authority, expressed, “The decision to grant a concession follows an in-depth evaluation of TAZARA’s challenges over the years, which necessitated urgent intervention.” The concession is expected to facilitate improvements and address longstanding operational obstacles.
Last year, China reaffirmed its support for the revitalization of TAZARA amidst the backdrop of the United States prioritizing investment in an alternative transport corridor, the Lobito Corridor, which relates to an Angolan port. This increasing focus on infrastructural development indicates a strategic shift to enhance mineral transportation routes in Africa.
In conclusion, the investment of $1.4 billion by CCECC in the TAZARA railway signifies a crucial effort to modernize one of Africa’s pivotal transport routes for copper and cobalt exports. This strategic move not only addresses longstanding operational challenges but also highlights the intensifying competition among international players for control over African mineral resources. The collaboration between China and Tanzania-Zambia is poised to enhance operational efficiency and bolster economic growth in the region.
Original Source: www.tradingview.com
