Tanzania and Burundi have joined hands with two Chinese companies to embark on a groundbreaking project that involves the construction of a railway connecting the two nations. This railway will serve as a pivotal link for transporting various metals, including the crucial battery mineral nickel, to the port of Dar es Salaam.
Announced during a signing ceremony, the project, valued at $2.15 billion, will be undertaken by China Railway Engineering Group Ltd and China Railway Engineering Design and Consulting Group. The financing for this ambitious initiative will be provided by the African Development Bank (AfDB), as mentioned by Tanzania’s Finance Minister, Mwigulu Nchemba.
The proposed 282-kilometer standard gauge railway is anticipated to transport an impressive three million metric tons of minerals annually. This development is a significant step towards enhancing transportation infrastructure in the region, as reported by Reuters.
China’s involvement in African infrastructure projects has been steadily increasing over the years, with the country emerging as Africa’s largest trading partner. Through initiatives like the Belt and Road Initiative, China has been instrumental in supporting the development of critical infrastructure such as roads, railways, and power plants across the continent.
In a similar vein, the China Development Bank recently approved a substantial $254.76 million loan to Nigeria for a key railway project, further underscoring China’s commitment to fostering infrastructure development in Africa. President Xi Jinping’s pledge of nearly $51 billion in funding for Africa in 2023 reflects China’s ongoing dedication to supporting infrastructure projects and job creation in the region.
Despite the economic benefits brought about by Chinese investments in Africa, concerns have been raised regarding the long-term implications. Issues such as escalating debt levels, economic reliance on China, and the environmental and social impact of large-scale infrastructure projects have become topics of growing concern.
In 2023, Chinese investment in Africa witnessed a resurgence, with lenders approving $4.61 billion in loans, marking the largest increase since 2016. Over the period from 2000 to 2023, China injected a substantial $182.28 billion into the continent, solidifying its position as Africa’s primary creditor. As Africa continues to navigate the complexities of balancing economic development with sustainability, the role of Chinese investments in shaping the continent’s future remains a topic of ongoing debate.
