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China and US Compete for Africa's Railways and Mineral Wealth

2024-11-11 22:35:44.292000

In a significant move to enhance regional connectivity, China has pledged US$1 billion to refurbish the Tanzania-Zambia railway, known as Tazara, which has suffered from neglect since its construction in the 1970s. Currently, only 10 out of the 50 locomotives are operational, highlighting the urgent need for revitalization [83687b8b]. This announcement was made during the Forum on China-Africa Cooperation (FOCAC) summit in early September 2024, where Chinese President Xi Jinping, Zambian President Hakainde Hichilema, and Tanzanian President Samia Suluhu Hassan witnessed the signing of the revitalization deal [83687b8b].

The Tazara railway, spanning 1,860 km from Zambia to Tanzania, aims to increase its operational capacity from 500,000 metric tonnes to approximately 2 million metric tonnes [83687b8b]. This project is seen as a direct response to the growing infrastructure initiatives by the US and EU in Africa, particularly the Lobito Corridor, which is part of a broader strategy to enhance trade routes for critical minerals essential for advanced technologies and renewable energy [396982a7].

The Lobito Corridor is a trans-Africa railway project from Angola to the Indian Ocean, which the US is heavily investing in, allocating US$250 million for upgrades on the Benguela Railway as part of a US$600 billion infrastructure initiative [e1f8a651]. This investment is part of a broader G7 infrastructure plan, which seeks to deploy funds by 2027 to enhance global infrastructure and counter China's growing influence in Africa [3b4faa26].

In a related development, Angola and Zambia recently signed a concession agreement with the Africa Finance Corporation (AFC) for the construction of an 800km railway line, which will connect Zambia Railways from Chingola to the Benguela Line in Luacano, Angola. This project is expected to significantly improve logistics for the mining sector and facilitate the transport of critical minerals, reinforcing the strategic competition for resources in the region [396982a7].

As Zimbabwe and Mozambique resume rail transport services on the Machipanda railway line, the focus on improving trade infrastructure continues to grow. This development is expected to reduce transport costs and ease congestion at border posts, contributing to the economic growth of the Southern African Development Community (SADC) region [92b10878].

The revitalization of the Tazara railway and the new rail projects in Angola and Zambia illustrate the dynamic and competitive landscape of infrastructure development in Africa, where both China and the US are vying for influence and access to critical mineral resources. Analysts suggest that connecting the Lobito and Tazara railways could create a transcontinental corridor, further intensifying this competition [e1f8a651].

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