China’s CCECC to Invest $1.4 Billion in Tanzania-Zambia Railway Upgrade

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The China Civil Engineering Construction Corporation (CCECC) has committed to investing $1.4 billion to upgrade the Tanzania-Zambia Railway (TAZARA), a crucial route for copper and cobalt exports from central Africa. The move aims to boost the efficiency of this key trade corridor, which faces logistical bottlenecks, particularly in South Africa.

Of the total investment, $1 billion will be allocated to revamping the railway’s infrastructure, including rail track rehabilitation. The remaining funds will go toward purchasing 32 new locomotives and 762 new wagons to increase the railway’s capacity.

The project is structured as a 30-year concession, with the first three years dedicated to construction and the subsequent 27 years for operations and maintenance. The agreement, signed last year, comes amid competing interests, as the United States has been supporting the Lobito transport corridor in Angola, a rival route for mineral exports.

This major investment by CCECC reflects China’s continued financial engagement in Africa, which had dipped in recent years after peaking at $28.4 billion in 2016, and is part of China’s broader strategy to enhance its influence and infrastructure projects across the continent.

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