Tanzania, Burundi Partner on $2.15 Billion Nickel Railway Project

Tanzania has signed a $2.15 billion agreement with two Chinese firms, China Railway Engineering Group Ltd and China Railway Engineering Design and Consulting Group, to construct a 282-kilometer railway linking the port of Dar es Salaam to a nickel mine in Burundi. The project aims to enhance cross-border trade and improve the efficiency of nickel exports, vital for industries such as stainless steel and battery production. Tanzania’s Transport Minister Makame Mbarawa highlighted that the initiative stems from a bilateral agreement between Tanzania and Burundi. The African Development Bank will finance the construction through a concessional loan, marking a significant investment in Tanzanian railway infrastructure. The railway is expected to transport three million metric tons of minerals annually, reflecting the growing demand for nickel globally. This project is part of China's broader investment strategy in Africa, aiming to bolster infrastructure development under the Belt and Road Initiative.