The China Civil Engineering Construction Corporation (CCECC) will invest $1.4 billion in the Tanzania-Zambia Railway (TAZARA) via a 30-year concession. This investment aims to address logistical bottlenecks impacting mineral exports from central Africa. TAZARA, a crucial route for copper, is experiencing a revival as competition for Africa’s minerals intensifies, particularly against alternative corridors supported by the United States.
The China Civil Engineering Construction Corporation (CCECC) announced its intention to invest $1.4 billion to enhance the Tanzania-Zambia Railway Authority (TAZARA) through a 30-year concession. This development is particularly significant as demand for Africa’s essential minerals grows. TAZARA has long served as a vital pathway for copper exports from central Africa, enabling avoidance of logistic challenges in South Africa that have hindered the export of copper and cobalt.
Bruno Ching’andu, the CEO of TAZARA Authority, stated, “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 pressing need for investment to overcome the infrastructure issues faced by TAZARA.
China’s commitment to support the revitalization of TAZARA was reaffirmed last year as the United States focused on funding an alternative mineral transport route known as the Lobito corridor, centered around an Angolan port. This renewed investment indicates ongoing competition for strategic infrastructure in the region.
The investment of $1.4 billion by CCECC illustrates a strategic move to enhance the transport infrastructure vital for mineral exports in Africa. The improvements to TAZARA will facilitate more efficient logistics and potentially increase the region’s economic opportunities. The competition between China and the United States for infrastructure investments in Africa further emphasizes the geopolitical significance of these developments.
Original Source: www.tradingview.com
