The China Civil Engineering Construction Corporation (CCECC) will invest $1.4 billion to upgrade the Tanzania-Zambia Railway (TAZARA) over a 30-year concession. This railway is crucial for copper exports from central Africa and helps circumvent logistical issues in South Africa. The investment follows an evaluation of TAZARA’s challenges, with China reaffirming its commitment amidst competition from U.S. initiatives for alternative transport corridors.
The China Civil Engineering Construction Corporation (CCECC) has announced a substantial investment of $1.4 billion to modernize the Tanzania-Zambia Railway (TAZARA) over a 30-year concession period. This initiative is part of the race to secure access to Africa’s valuable minerals. The railway serves as an essential channel for copper exports from central Africa, allowing for the avoidance of logistical delays encountered in South Africa, which have hindered copper and cobalt trade.
Bruno Ching’andu, the CEO of the Tanzania-Zambia Railway Authority, pointed out, “The decision to grant a concession follows an in-depth evaluation of TAZARA’s challenges over the years, which necessitated urgent intervention.” This remark underscores the long-standing issues faced by TAZARA that require prompt attention to ensure efficient operation.
Last year, China pledged to support the revitalization of TAZARA, coinciding with the United States’ investment in an alternative mineral transport corridor known as Lobito, linked to a port in Angola. This competitive landscape highlights the growing international interest in Africa’s rich mineral resources.
In summary, the CCECC’s investment in TAZARA marks a significant move towards enhancing infrastructure critical for mineral exports in Africa. This initiative follows a thorough assessment of the railway’s challenges, indicating a strategic approach to revitalizing transportation routes. The ongoing competition between global powers to access Africa’s resources highlights the strategic importance of this railway in the broader context of international trade.
Original Source: www.tradingview.com
