China Civil Engineering Construction Corporation will invest $1.4 billion in the Tanzania-Zambia railway (TAZARA) to enhance operations through a 30-year concession. This development addresses logistical hurdles faced by copper and cobalt exports, aligning with China’s commitment to revitalize the railway amidst increased competition for Africa’s mineral resources.
The China Civil Engineering Construction Corporation (CCECC) is set to invest $1.4 billion to enhance the Tanzania-Zambia railway, known as TAZARA, through a 30-year concession. This investment highlights the increasing competition for Africa’s essential minerals, particularly amidst rising demand for copper and cobalt.
TAZARA serves as a crucial pathway for copper exports from central Africa, helping to avoid logistical bottlenecks present in South Africa, which have impeded the export of these minerals. The railway’s significance in the supply chain cannot be overlooked as it provides a more efficient route for transporting vital resources.
Bruno Ching’andu, CEO of the TAZARA Authority, articulated the reasoning behind granting the concession, 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 to revitalize TAZARA at a time when the United States was backing an alternative mineral transport corridor known as Lobito, connected to an Angolan port. This move underscores the strategic investments being made in Africa’s transportation infrastructure to enhance mineral logistics.
The $1.4 billion investment by CCECC in the Tanzania-Zambia railway emphasizes the growing significance of efficient infrastructure for mineral transport in Africa. This development not only aims to resolve TAZARA’s challenges but also positions it as an essential link in the global minerals supply chain. As nations vie for influence in African resources, the TAZARA upgrade represents a critical step for both regional economies and international trade.
Original Source: www.tradingview.com
