Burundi and Tanzania have partnered with two Chinese companies to build a railway linking the two countries for transporting metals, including battery mineral nickel, to the port city of Dar es Salaam.
Burundi and Tanzania have signed an agreement for the $2.15 billion joint-venture railway project to be developed by China Railway Engineering Group Ltd and China Railway Engineering Design and Consulting Group, Tanzania’s transport minister Makame Mbarawa announced during a recent signing ceremony. The project of the 282 kilometer-long standard gauge line, which is expected to transport three million metric tonnes of minerals annually, will be financed by the African Development Bank (AfDB), Tanzania’s finance minister Mwigulu Nchemba said. “This is a very significant moment because it marks the first foray of the AfDB in the financing of Tanzania’s railway projects,” he added.
China has become Africa’s largest trading partner and creditor in recent years, securing major infrastructure deals for railways, roads, and power plants under programs such as its flagship Belt and Road Initiative. However, the continued investment by the Asian powerhouse in African infrastructure also raised concerns about long-term implications. After a period of slowdown, in 2023, Chinese president Xi Jinping pledged nearly $51 billion in new financing for African countries, promising more infrastructure projects and the creation of at least one million new jobs.