Tanzania and Burundi have signed a $2.15 billion agreement with Chinese firms to construct a railway for transporting nickel and other metals to the port of Dar es Salaam, enhancing trade and economic collaboration in the region.
Tanzania and Burundi have entered into a significant agreement with two Chinese companies to construct a railway line aimed at facilitating the transportation of metals, particularly nickel, to the port city of Dar es Salaam. This joint venture, valued at $2.15 billion, is set to be developed by the China Railway Engineering Group along with the China Railway Engineering Design and Consulting Group. The announcement was made by Tanzania’s Transport Minister, Makame Mbarawa, during the signing ceremony that took place on Wednesday.
This agreement marks a crucial development in enhancing infrastructure aimed at mineral transport in East Africa. Nickel, which is essential for battery production, is becoming increasingly critical due to the rising demand for electric vehicles and renewable energy solutions. By establishing a railway link, Tanzania and Burundi aim to boost trade and economic growth through improved logistics and accessibility to international markets via the port of Dar es Salaam.
In summary, the agreement between Tanzania, Burundi, and the Chinese firms signifies a strategic move towards improving mineral transport infrastructure in the region. The $2.15 billion investment is expected to enhance trade capacity, particularly in nickel, thereby promoting regional economic growth. The partnership underscores the growing importance of international collaboration in infrastructure development for resource-rich nations.
Original Source: asia.nikkei.com
