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China Boosts Influence in Africa with $1.4 Billion Investment in TAZARA Railway

China has confirmed its role as a pivotal player in the infrastructural development of Africa with an investment worth $1.4 billion in the Tanzania-Zambia Railway (TAZARA). China Civil Engineering Construction Corporation (CCECC) will manage the project, which will update a valuable copper export transport connection in central Africa. The investment is another step in China’s long-term effort to deepen economic ties with African nations through massive infrastructure projects.

TAZARA, originally built with Chinese assistance in the 1970s, is a vital lifeline for the transportation of goods and minerals around the region. However, decades of underinvestment and operational issues have seen the railway seriously needing to be upgraded. The new concession, granted after an extensive study of TAZARA’s troubles, is expected to breathe new life into the railway and render it more efficient. TAZARA Authority CEO Bruno Ching’andu noted the need for intervention, stating that the agreement with CCECC would end age-old infrastructure and operational inefficiencies.

China’s incursion into Africa’s rail sector has been profound. China has financed high-value railway projects in Africa, including Kenya’s Standard Gauge Railway (SGR), costing over $5 billion, and a series of rail contracts in Nigeria. However, over the past several years, China has grown more cautious in large-scale lending due to debt repayment challenges faced by some African nations. Zambia and Ghana, for example, have defaulted on debts, which has prompted Beijing to rethink its financial involvement. Despite this change of heart, the TAZARA investment shows that China remains committed to strategic ventures that support its broader economic agenda in Africa.

$1 billion of the investment, said Ching’andu, would be used to rehabilitate TAZARA’s rail tracks for efficiency and safety. The remainder will be utilized to purchase 32 new locomotives and 762 wagons, which would significantly boost freight capacity. The 30-year concession would be split into three years of construction and 27 years of operations and maintenance. Even though negotiations with CCECC and African governments are ongoing, the deal is expected to advance China’s presence in the region’s transportation sector.

China’s re-entry into TAZARA comes at a time when the United States is backing a rival mineral transportation corridor in Africa. The Lobito Corridor, which enjoys the support of a $550 million U.S. loan, aims to link the Democratic Republic of the Congo and Zambia with Angola’s Atlantic coast. The Trafigura and Africa Finance Corporation-backed project would provide a rival conduit for exporting crucial minerals such as copper and cobalt. Former U.S. President Joe Biden visited Lobito towards the close of his presidency to promote the project, though no public comment on its chances has so far been made by current President Donald Trump. Despite uncertainty about U.S. involvement, the Africa Finance Corporation has said that the Lobito Corridor will proceed.

China’s investment in TAZARA is part of its broader Belt and Road Initiative (BRI), intended to construct international trade and infrastructure networks. While Chinese lending to Africa reached a 20-year low in 2022—far below its $28.4 billion high in 2016—this new pledge demonstrates that Beijing continues to see value in financing strategic projects on the continent. By securing long-term railway concessions and upgrading transport corridors, China not only strengthens its economic bond with Africa but also further solidifies its grip on important supply chains in the region.

As CCECC begins working on the TAZARA upgrade, the railway will become an even more competitive and efficient African mineral export transport connection. If successful, the project could solidify China’s status as Africa’s most important infrastructure partner while offering an alternative to South Africa’s congested logistics chains. Most importantly, China’s investment in TAZARA is a sign of its long-term confidence in Africa’s economic growth and its strategic interest in global trade connectivity.

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