China signs deal to upgrade decades-old railway between Zambia and Tanzania

China has signed a deal with Tanzania and Zambia to rehabilitate a decades-old railway aimed at improving rail-sea transportation in resource-rich East Africa,

The upgrade of a railway will help landlocked Zambia, Africa’s second-largest copper producer, in exporting its metal through Tanzania.

The agreement was overseen by the heads of state from the three countries during the Forum on China-Africa Cooperation, marking the most significant enhancement of the Tazara railway since Mao Zedong’s support for its construction in the 1970s, Bloomberg reported.

In February, China proposed to spend $1 billion to rehabilitate the rail line through a public-private partnership model.

This railway could become a key route for exporting copper to China, the world’s largest consumer of this metal, which is essential for products like air conditioners and electric vehicles.

China’s takeover of the concession for a key export route for critical minerals from Zambia and neighbouring Democratic Republic of Congo is partly a response to the US backing a rival rail project heading toward Africa’s west coast. This move is the latest in a competitive struggle for influence, fueling a revival of rail infrastructure in the region.

The Chinese government acted swiftly after Zambia requested assistance with refurbishing the railway. In December, state-owned China Civil Engineering Construction Corp sent experts to assess the line.

By March, China’s ambassador to Zambia formally presented a proposal to invest over $1 billion to revitalize and commercially operate the railway. Negotiations ensued, leading to the deal being finalized on Wednesday.

The Tazara railway has been a significant symbol of China’s relationship with Africa, representing the first major infrastructure project it built on the continent. Despite having limited funds, Mao’s government chose to support Zambia with the 1,860-kilometer (1,156-mile) railway.

At the time, Zambia was landlocked and cut off after the government of then-Rhodesia declared independence from Britain and closed its border, blocking Zambia’s main export route through South Africa. President Kenneth Kaunda sought funding from various sources, including the World Bank, but only China stepped up to help.

That crucial support established a strong foundation for China, positioning it to now take over the railway’s commercial operations, which have since fallen into disrepair.

The deal also reflects China’s more cautious stance on foreign infrastructure projects following some high-profile failures of loans under its Belt and Road Initiative. Zambia, which borrowed over $6 billion from various lenders, defaulted in 2020, leading to a challenging debt restructuring process that’s still ongoing.

In response, China Civil Engineering Construction Corp has proposed a public-private partnership model for the Tazara revitalization. This approach emphasizes developing and managing the railway on a commercial basis, rather than relying solely on large-scale loans.