The China Civil Engineering Construction Corporation (CCECC) will invest $1.4 billion to upgrade the Tanzania-Zambia railway, known as TAZARA, under a 30-year concession. The investment aims to address logistical challenges faced by copper exporters from central Africa. CEO Bruno Ching’andu indicated the need for urgent interventions to improve railway operations, amidst growing competition for African minerals.
The China Civil Engineering Construction Corporation (CCECC) has announced a significant investment of $1.4 billion to enhance the Tanzania-Zambia railway (TAZARA) under a 30-year concession agreement. This move comes amid growing competition for critical mineral resources in Africa, particularly copper and cobalt export routes. TAZARA plays a vital role in helping copper producers in central Africa overcome logistical challenges and export efficiently.
Bruno Ching’andu, CEO of TAZARA Authority, highlighted the need for urgent intervention, stating, “The decision to grant a concession follows an in-depth evaluation of TAZARA’s challenges over the years, which necessitated urgent intervention.” This development signifies China’s commitment to revive TAZARA, especially at a time when the U.S. is supporting an alternative mineral transport corridor known as Lobito, based in Angola.
The investment by CCECC in TAZARA represents a crucial step towards revitalizing an essential transport route for African copper exports. With a significant financial backing and a long-term commitment, the updated railway is expected to alleviate logistical bottlenecks, enhancing trade efficiency. This also reflects the competitive landscape for Africa’s mineral resources, with global powers like China and the U.S. vying for influence in the region.
Original Source: www.tradingview.com
