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.
The $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 during the signing ceremony on Wednesday.
Tanzania’s Finance Minister, Mwigulu Nchemba, stated that the project will be financed by the African Development Bank (AfDB).
The 282-kilometer (175-mile) standard gauge railway is expected to transport three million metric tons of minerals annually, according to Tanzania’s finance ministry, Reuters reported.
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 $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 $4.61 billion in loans—the first major increase since 2016. Between 2000 and 2023, China injected $182.28 billion into the continent, solidifying its position as Africa’s largest creditor.
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.
