The China Civil Engineering Construction Corporation will invest $1.4 billion to enhance the Tanzania-Zambia railway, improving copper export logistics from central Africa. The investment includes $1 billion for track rehabilitation and new rolling stock. This concession marks a significant Chinese commitment to Africa against competing U.S. initiatives.
The China Civil Engineering Construction Corporation (CCECC) has announced a $1.4 billion investment to upgrade the Tanzania-Zambia railway (TAZARA), which plays a critical role in copper exports from central Africa. This investment aims to alleviate previous logistics bottlenecks experienced, primarily due to restrictions in South Africa. TAZARA Authority CEO Bruno Ching’andu noted that the concession emerged from a thorough assessment of the railway’s ongoing challenges, prioritizing urgent intervention.
Last year, China signed an agreement to revitalize the 50-year-old TAZARA amid competing projects, notably led by the United States’ Lobito corridor, connecting the Democratic Republic of the Congo and Zambia to Angola’s coast. The investment will allocate $1 billion for rehabilitating rail tracks and the remainder for acquiring 32 new locomotives and 762 wagons to enhance freight capacity. This announcement was made at the Zambia International Mining and Energy Conference, where Ching’andu engaged with investors.
The concession will unfold over 30 years, divided into three years for construction and 27 years dedicated to operation and maintenance, although negotiations are still ongoing. While the U.S. has invested $550 million for the Lobito corridor, the Africa Finance Corporation, which also endorses Lobito, confirmed the project’s independent progression without U.S. support.
This CCECC engagement signals a resurgence in China’s financial commitments to Africa, which have declined recently. After reaching a peak of $28.4 billion in 2016, Chinese lending slipped to a 20-year low in 2022. Following challenges in debt repayment from some African nations, including defaults by Zambia and Ghana, China is now adopting a more careful stance regarding large investments in the continent.
The CCECC’s $1.4 billion investment in upgrading the Tanzania-Zambia railway marks a significant intervention aimed at revitalizing a crucial transport route for copper exports. This move not only addresses prior logistical challenges but also emphasizes China’s commitment to infrastructure development in Africa amidst growing competition. As negotiations continue and construction begins, both operational and financial landscapes for African mineral transport could see substantial changes due to this investment.
Original Source: www.cnbcafrica.com
