Tanzania and Burundi have signed a $2.15 billion agreement with Chinese firms to build a railway for transporting metals, including nickel, to Dar es Salaam. The project will be developed by China Railway Engineering Group and China Railway Engineering Design and Consulting Group.
Tanzania and Burundi have formalized a significant agreement with two Chinese corporations to construct a railway designed to facilitate the transportation of metals, particularly the battery mineral nickel, to Dar es Salaam. The project, valued at $2.15 billion, will be executed by the China Railway Engineering Group and the China Railway Engineering Design and Consulting Group. This joint venture was officially announced during a signing ceremony held on Wednesday, led by Tanzania’s Transport Minister, Makame Mbarawa.
This agreement is pivotal for enhancing trade and economic ties between Tanzania and Burundi, particularly in the metals sector. Nickel, a crucial material in battery production, is increasingly sought after due to the global shift towards renewable energy. The construction of this railway aims to bolster infrastructure while simultaneously promoting regional economic integration through improved transportation logistics.
The agreement between Tanzania, Burundi, and the Chinese firms represents a transformative step in regional infrastructure development, particularly for the mining industry. The project not only aims to streamline the export of nickel but also reflects the growing partnership between African nations and international investors, fostering economic growth and sustainability in the region.
Original Source: asia.nikkei.com