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Tanzania and Burundi Forge New Railway Link for Mineral Transport

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Tanzania and Burundi Forge New Railway Link for Mineral Transport

(3 Minutes Read)

Tanzania and Burundi have partnered with two Chinese firms to construct a railway linking the two countries, facilitating the transport of metals—including battery mineral nickel—to Dar es Salaam’s port.

Tanzania and Burundi have partnered with two Chinese firms to construct a railway linking the two countries, facilitating the transport of metals—including battery mineral nickel—to Dar es Salaam’s port. Tanzania and Burundi have partnered with Chinese firms to build a railway linking the two countries. Project to facilitate transport of metals, including nickel, to Dar es Salaam’s port. China’s continued investment in African infrastructure raises concerns about long-term implications.

The USD 2.15 billion project will be developed by China Railway Engineering Group Ltd and China Railway Engineering Design and Consulting Group. Tanzania’s Transport Minister Makame Mbarawa announced this during the signing ceremony on Wednesday. The project will be financed by the African Development Bank (AfDB).

According to Tanzania’s finance ministry, the 282-kilometer (175-mile) standard gauge railway is expected to transport three million metric tons of minerals annually. For years, China has been Africa’s largest trading partner, securing major infrastructure deals for roads, railways, and power plants under its Belt and Road Initiative.

Earlier this year, the China Development Bank approved a $254.76 million loan to Nigeria to support constructing a key railway project, reinforcing China’s long-standing commitment to African infrastructure development. In 2023, President Xi Jinping pledged nearly USD 51 billion in funding for Africa, promising more infrastructure projects and the creation of at least one million new jobs. After a period of slowdown, Chinese investment in Africa saw a resurgence last year, with lenders approving USD 4.61 billion in loans—the first major increase since 2016. Between 2000 and 2023, China injected USD 182.28 billion into the continent, solidifying its position as Africa’s largest creditor.

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While these investments have spurred economic growth and development, concerns are mounting over the long-term implications, including rising debt levels, economic dependency, and the environmental and social impact of large-scale infrastructure projects.