Jump to navigation

Tanzania

Beijing backs rail project to rival EU/US Lobito Corridor

Tazara line to be refurbished by Chinese company for $1.4 billion

The agreement struck on 20 November between China, Zambia and Tanzania to refurbish and reopen the Tanzania-Zambia Railway Authority (Tazara) railway line at a cost of US$1.4 billion looks like a direct response by Beijing to the Lobito Corridor rail project promoted by the United States and the European Union (AC Vol 66 No 22, Brussels pushes Global Gateway to rival US-China deal-making).

The 1,860-kilometre network between Tanzania and Zambia was built by China in the 1970s to facilitate copper exports and fuel imports through Tanzania. Officials in Lusaka, where the deal was signed, say that the project will modernise the railway with a view to increasing freight volumes on the line from 100,000 to 2.4 million tonnes per year.

It also promises to cut transportation time by two-thirds and reduce the costs of freighting minerals and agricultural produce. It looks like a move by Beijing to cement its position as the main player in Zambia’s copper market (AC Vol 65 No 23, Leaders look for deals in the Trump marketplace). 

The rival $5bn Lobito Corridor is being pushed by the US and EU as a way to link Zambia’s copper belt and Congo-Kinshasa's mineral-rich Katanga region with Lobito port on Angola’s Atlantic Coast. Though US officials have expressed hope that the Lobito network could be extended to Dar es Salaam, this is a long-term aspiration.

Unlike the Lobito network, where contracts will not necessarily go to US and European firms, Tazara will be rebuilt and then operated by the China Railway Construction Corporation, making it a typical Belt and Road Initiative project.



Related Articles

Brussels pushes Global Gateway to rival US-China deal-making

Eurocrats will argue for more transactional policies at the Luanda summit to secure critical minerals. But can the EU’s cash match its ambitions?

Africa Union and European Union leaders insist they want to ratchet up economic security ties ahead of their two-day summit starting in Angola on 25 November, just after...


Leaders look for deals in the Trump marketplace

States rich in critical minerals could win big investments as Washington jostles for access with Beijing

Countries sitting on the minerals to power the energy transition – such as copper, cobalt and lithium – expect a more determined push for access from US mining...


Cementing ambitions

President Idriss Déby Itno inaugurated a new cement factory at Baoré in Mayo-Kebbi on 16 February. Chad’s first cement plant was built by China CAMC Engineering Company, thanks...


Pre-presidential discord

Claims of vote-rigging sour the atmosphere for the poll that acting President Rupiah Banda looks likely to win

Zambia, like Kenya andZimbabwe faces the risk of a disputed presidential election. The vote to replace the late Levy Patrick Mwanawasa is set for 30 October...


Fights before the funeral

The infighting began as soon as Michael Sata died and Guy Scott is trying to hold the ring between the different factions

Acting President Guy Scott is finding out just how difficult the management of the governing Patriotic Front can be. On 3 November he was obliged to reinstate Edgar...