The China Civil Engineering Construction Corporation will invest $1.4 billion to upgrade the Tanzania-Zambia Railway, enhancing a crucial route for copper exports and addressing logistical issues encountered within South Africa. The investment includes significant infrastructure rehabilitation and operational enhancements, solidifying China’s ongoing financial commitment to African railway projects amidst evolving international lending landscapes.
The China Civil Engineering Construction Corporation (CCECC) has announced a substantial investment of $1.4 billion aimed at upgrading the Tanzania-Zambia Railway (TAZARA), according to an official statement made on March 20. This investment is expected to enhance a critical transport route for copper exports from Central Africa, addressing previous logistical challenges encountered in South Africa.
Bruno Ching’andu, CEO of the TAZARA Authority, acknowledged that this investment follows a thorough assessment of the railway’s historical difficulties and the necessity for immediate corrective action. A partnership agreement to revitalize the 50-year-old TAZARA was established last year, coinciding with U.S. efforts to finance an alternative transport corridor from Angola.
Out of CCECC’s total investment, $1 billion will be dedicated to rehabilitating TAZARA’s rail infrastructure. The remaining funds will procure 32 new locomotives and 762 new wagons to enhance operational capacity. Ching’andu highlighted these developments during a presentation at the Zambia International Mining and Energy Conference.
The concession is structured to encompass three years of construction followed by 27 years of operational management. Negotiations between CCECC and TAZARA authorities remain ongoing. Meanwhile, prior U.S. engagement with the Lobito corridor promotes connectivity from the mineral-rich regions of the Democratic Republic of the Congo and Zambia to the Angolan coast.
Despite potential U.S. backing for the Lobito corridor, the Africa Finance Corporation remains optimistic about proceeding with the project independently. CCECC’s investment reflects China’s renewed focus on African lending, following a decrease in such financing in recent years, notably from a peak of $28.4 billion in 2016. This shift comes as some countries face repayment challenges and defaults.
In summary, CCECC’s $1.4 billion investment in the Tanzania-Zambia Railway (TAZARA) marks a significant improvement in a vital transport route for mining exports, particularly copper. This intervention follows an extensive evaluation of the railway’s challenges and indicates renewed Chinese investment interest in African infrastructure amidst shifts in international financial support. As negotiations continue, stakeholders remain hopeful about the development’s positive impact on regional logistics and trade.
Original Source: www.cnbcafrica.com
