China to Build $2.15 Billion Railway Linking Tanzania and Burundi for Mineral Transport

Jordan Vega

Jordan Vega

January 31, 2025 · 3 min read
China to Build $2.15 Billion Railway Linking Tanzania and Burundi for Mineral Transport

Tanzania and Burundi have partnered with two Chinese firms to construct a major 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, according to Tanzania's Transport Minister Makame Mbarawa.

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. The project will be financed by the African Development Bank (AfDB), stated Tanzania's Finance Minister, Mwigulu Nchemba.

This development is part of China's continued investment in African infrastructure, solidifying its position as the continent's largest creditor. 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. As China continues to expand its presence in Africa, questions arise about the sustainability and equity of these investments.

Despite these concerns, the railway project is expected to have a significant impact on the region's economy, facilitating the transportation of valuable minerals and boosting trade between Tanzania and Burundi. As the project progresses, it will be crucial to monitor its implementation and assess its long-term effects on the region.

The partnership between Tanzania, Burundi, and China marks a significant milestone in the development of African infrastructure, highlighting the importance of cooperation and investment in the continent's growth. As the project moves forward, it will be essential to ensure that the benefits of this investment are shared equitably and that the environmental and social implications are carefully managed.

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