By Enyichukwu Enemanna
Tanzania and Burundi have signed an agreement with two Chinese firms for the construction of a railway between the two African countries, facilitating the movement of metals, including battery mineral nickel, to the port city of Dar es Salaam.
The $2.15 billion joint venture will be constructed by China Railway Engineering Group and China Railway Engineering Design and Consulting Group, Tanzania’s Transport Minister, Makame Mbarawa, said at a ceremony for the signing of the Memorandum of Understanding (MoU).
The African Development Bank will finance the project through a concessional loan, Tanzania’s Finance Minister, Mwigulu Nchemba, said.
He added, “This is a very significant moment because it marks the first foray of the bank into the financing of our railway projects.”
Mbarawa stated that the deal was the result of a bilateral agreement between the governments of Tanzania and Burundi.
He said the purpose of the 282km link was to make nickel exports more efficient and to open up cross-border trade between the two nations.
The two countries expect the 282km standard gauge line to transport three million tonnes of minerals annually, Tanzania’s finance ministry said last year.
The railway will run between the Tanzanian town of Uvinza, near the border with Burundi, and the town of Musongati, which is located near a significant deposit of nickel, as well as gold, platinum, palladium, copper, and iron.
Nickel is a high-demand mineral used in stainless steel production, EV batteries, desalination equipment, and many other applications.
Its price is volatile but has doubled in the past 10 years, rising from below $10,000 per tonne in 2016 to almost $20,000 this month.
