• 30-year concession includes new locomotives, wagons, and freight upgrades
• Deal strengthens mineral export routes as US, EU push Lobito Corridor
China signed a $1.4 billion agreement with Zambia and Tanzania on Monday to upgrade the TAZARA railway, a critical 1,860-kilometer line connecting Zambia's Copperbelt mines to the port of Dar es Salaam.
The rail line, originally constructed in the 1970s, is no longer in condition to handle the region's increasing volume of mineral freight.
The modernization effort comes as Zambia and the Democratic Republic of Congo (DRC) boost copper production, with a large portion of exports currently moved by road, contributing to significant congestion at border crossings.
In exchange for the investment, the Tanzania Zambia Railway Authority disclosed that the negotiations with China include a 30-year concession for the railway. The funding will also be used to purchase new locomotives and wagons.
Some analysts view China's interest in this corridor as part of a broader geopolitical competition among major powers to secure control over critical mineral supply chains essential for the global energy transition. The United States and the European Union have similarly announced investments in modernizing the Lobito Corridor to the west.
Japan is also actively positioning itself, focusing on the Nacala Corridor, which is strategic for mineral freight in Southern Africa. In late August, Japan announced a $7 billion investment along that route, in collaboration with the African Development Bank and other partners.
Henoc Dossa
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