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China, Zambia and Tanzania signed an agreement for a USD1.4 billion railway renovation project

China, Zambia, and Tanzania have reached an agreement to renew the Tanzania-Zambia Railway (Tazara), which transports mineral resources from southern Africa to the Indian Ocean via Tanzania's Dar es Salaam Port.

China, Zambia and Tanzania signed an agreement for a USD1.4 billion railway renovation project

A signing and groundbreaking ceremony for the USD1.4 billion project to be carried out with Chinese investment was held in Lusaka, the capital of Zambia. The ceremony was attended by Zambian President Hakainde Hichilema, Tanzanian Vice President Emmanuel Nchimbi, and Chinese Premier Li Qiang.

The project covers the renovation and expansion of the 1,860 kilometer railway line between Zambia and Tanzania. China will finance the construction costs, and the line will be operated by a Chinese company for 30 years. As part of the modernization, tracks, tunnels, bridges, stations, and related infrastructure will be built, increasing annual transport capacity from 100,000 tons to 2.4 million tons.

The Tazara Project holds strategic importance for transporting industrially critical minerals such as copper and cobalt extracted in southern Africa to global markets. Growing geopolitical competition in the region has brought renewed debate over which transport corridors will carry these minerals to the world. The U.S. backed “Lobito Corridor” aims to route shipments through Angola’s Atlantic port of Lobito, while the Japan backed “Nacala Corridor” targets transport via Mozambique’s Indian Ocean port of Nacala.

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