China’s CCECC will invest $1.4 billion in the Tanzania-Zambia railway, TAZARA, to enhance its operation over 30 years. This move aims to resolve logistical challenges linked to copper exports and demonstrates China’s commitment to improving infrastructure amid growing competition in Africa’s mineral sector.
The China Civil Engineering Construction Corporation (CCECC) is poised to invest $1.4 billion over a 30-year period to enhance the Tanzania-Zambia railway. This investment reflects a strategic move amidst intensifying competition for Africa’s essential minerals.
Known as TAZARA, the railway is a vital conduit for copper exports from central Africa, providing an alternative route that mitigates the logistics challenges often faced in South Africa, which have adversely affected the export of copper and cobalt.
Bruno Ching’andu, the CEO of the Tanzania-Zambia Railway Authority, commented on this development, stating, “The decision to grant a concession follows an in-depth evaluation of TAZARA’s challenges over the years, which necessitated urgent intervention.”
Last year, China pledged to support the revival of TAZARA while the United States invested in a competing transportation corridor, Lobito, which is associated with an Angolan port.
The significant investment by CCECC into the Tanzania-Zambia railway emphasizes the increasing global interest in Africa’s mineral resources. Improved infrastructure through TAZARA is expected to alleviate logistical issues and elevate copper and cobalt exports. This investment represents a proactive response to the longstanding challenges faced by TAZARA.
Original Source: www.tradingview.com
