The CCECC will invest $1.4 billion in the Tanzania-Zambia railway (TAZARA) to upgrade its infrastructure through a 30-year concession. This initiative seeks to address logistical challenges that hinder copper exports from central Africa and highlights ongoing competition for critical minerals. CEO Bruno Ching’andu emphasized the need for urgent intervention in the railway’s operations, while China’s involvement coincides with U.S. support for a competing transport corridor.
The China Civil Engineering Construction Corporation (CCECC) has announced a substantial investment of $1.4 billion to modernize the Tanzania-Zambia railway, known as TAZARA, through a 30-year concession. This decision is part of a broader strategy to strengthen logistics for critical minerals in Africa, particularly copper, as competition intensifies for these resources.
The TAZARA railway is essential for transporting copper from central Africa, offering an alternative route to South Africa, which has been plagued by logistical challenges that hinder the export of copper and cobalt. Bruno Ching’andu, the CEO of the TAZARA Authority, emphasized the importance of this investment, 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 its support for the revitalization of the aging TAZARA railway, a strategic move coinciding with U.S. efforts to fund an alternative mineral transport corridor through Lobito, a port in Angola. This investment reflects China’s commitment to enhancing its infrastructure footprint in Africa, amid growing competition for essential mineral resources.
The CCECC’s investment of $1.4 billion in the TAZARA railway signals a significant commitment to enhancing transportation logistics in Africa’s mineral-rich regions. It aims to alleviate existing bottlenecks and improve export capabilities, emphasizing the strategic nature of infrastructure development amidst international competition. The backing from China aligns with broader trends in global resource management, particularly for essential minerals like copper and cobalt.
Original Source: www.tradingview.com
