China to Invest $1B in Revamping African Railway Amid Global Mineral Trade Competition

China to Invest $1B in Revamping African Railway Amid Global Mineral Trade Competition

Amid intensifying competition among global powers for control over critical mineral trade routes, China unveils plans to allocate US$1 billion towards refurbishing a vital railway line.

This initiative, under the Belt and Road Initiative, aims to upgrade the Tanzania-Zambia railway, connecting Zambia’s copper belt region to the Tanzanian port of Dar es Salaam.

Recently, China’s ambassador to Zambia presented a proposal to Zambia’s Transport Minister, outlining the investment to be implemented through a public-private partnership over the upcoming years.

Highlighting cooperation between the involved countries, the ambassador emphasized the project’s potential benefits.

Following a comprehensive assessment conducted by a joint team, which concluded in December, preparations for the railway’s overhaul are underway.

This effort is part of China’s commitment, reiterated by President Xi Jinping during diplomatic visits, to support the modernization of this critical infrastructure, originally established in the 1970s with Chinese assistance.

China’s involvement extends to the appointment of the China Civil Engineering Construction Corporation (CCECC) to negotiate a concession for operating the railway line.

Drawing parallels with successful models like the Ethiopia-Djibouti Railway, experts anticipate a similar rehabilitate-operate-transfer concession structure.

The revitalized railway is strategically significant, poised to facilitate the transportation of mineral exports from Zambia and the Democratic Republic of the Congo (DRC).

This development coincides with competing efforts by the US and EU to bolster infrastructure connecting the region to alternative trade routes, underscoring the geopolitical significance of mineral resources, particularly cobalt, crucial for modern technologies.

Rooted in historical cooperation, China’s engagement in the Tazara railway project symbolizes longstanding ties with Africa and reinforces its presence in the continent’s development landscape.

As negotiations progress, the outcome will shape the dynamics of regional trade and influence the broader geopolitical landscape.