“As the race for Africa’s strategic minerals intensifies, infrastructure like the Tanzania-Zambia Railway becomes a critical artery for driving economic growth and enhancing the global reach of Tanzania’s mining sector.”
On September 4th, 2024, a pivotal agreement was signed during the 2024 Forum on China-Africa Cooperation (FOCAC) in Beijing. Tanzania, Zambia, and China inked a Memorandum of Understanding (MoU) to revitalize the Tanzania-Zambia Railway (TAZARA), a key bi-national railway linking Zambia’s Copperbelt to Tanzania’s Dar es Salaam seaport. This revitalization, backed by China’s USD 1 billion investment, holds immense potential for Tanzania’s mining sector, offering vital logistics infrastructure for transporting bulk minerals. But beyond its immediate benefits, this development takes place against the backdrop of escalating competition between China and the U.S. over control of strategic minerals in Africa.
TAZARA’s Role in Unlocking Tanzania’s Mineral Wealth
For Tanzania’s mining industry, efficient transportation infrastructure is a key component in transforming potential into profit. TAZARA, originally built in the 1970s and largely financed by China, has been a critical transport corridor for Zambia’s copper exports. However, the railway has been operating below its capacity in recent years, with only a fraction of its potential 5 million metric tons of cargo being utilized. The revitalization will expand TAZARA’s ability to transport bulk minerals, including copper, coal, and increasingly important strategic minerals like graphite and cobalt.
Tanzania’s rich mineral reserves, make it an attractive partner for international investors. With the global demand for strategic minerals intensifying—especially those vital for green technologies such as electric vehicle batteries—the importance of having efficient logistics systems in place has never been greater. The upgraded TAZARA railway is expected to reduce transportation costs drastically, increase the competitiveness of Tanzanian mineral exports, and provide easier access to international markets.
U.S.-China Competition in Africa’s Strategic Minerals
China’s investment in TAZARA and other infrastructure projects is not solely about improving trade routes. It’s part of a larger geopolitical contest between China and the U.S. for control over Africa’s strategic mineral resources, essential for technologies like electric vehicles, renewable energy systems, and high-tech electronics. Both nations are positioning themselves as key players in Africa’s mining sectors, with Tanzania at the heart of this battle.
China’s revitalization of TAZARA is closely on the heels of a major U.S. accomplishment in Africa—the completion of Congo’s Lobito Railway. The Lobito Corridor, which provides a direct rail link from the Democratic Republic of Congo’s (DRC) copper and cobalt mines to the Atlantic Ocean, is seen as a significant geopolitical move by the U.S. and its partners to counter China’s dominance in African infrastructure and mineral trade.
The DRC holds over 60% of the world’s cobalt reserves, a critical mineral in the production of lithium-ion batteries. For decades, China has secured its dominance in this market through investment in DRC’s mining sector. However, the U.S.-backed Lobito Railway now offers an alternative transport route for cobalt and other minerals, threatening China’s stronghold. With TAZARA, China is reinforcing its influence in southern Africa, particularly in Zambia and Tanzania, which also hold significant mineral wealth.
Strategic Mineral Wealth: A Growing Geopolitical Focus
Tanzania’s mineral reserves, particularly its growing role as a producer of graphite (used in electric vehicle batteries), are drawing increased attention from global powers. As the world transitions toward renewable energy and electric vehicles, the demand for strategic minerals such as graphite, lithium, and cobalt is skyrocketing. With nine large-scale mining licenses already issued for graphite in Tanzania, the country is poised to become a key player in the global supply chain for electric vehicle batteries.
China’s dominance in the production of these critical minerals is now being challenged by the U.S., which seeks to diversify its supply chains and reduce dependence on Chinese-controlled sources. The competition has turned Africa—and Tanzania in particular—into a battleground for influence and access to these strategic resources.
A Boon for Tanzania’s Mining Sector
For Tanzania, the U.S.-China rivalry presents both opportunities and challenges. The revitalization of TAZARA, coupled with China’s continued infrastructure investments, enhances Tanzania’s ability to transport bulk minerals efficiently. This improved logistical capacity can attract further investment into Tanzania’s mining sector, particularly from companies seeking to secure supplies of strategic minerals.
At the same time, Tanzania must navigate the growing geopolitical tension between the U.S. and China, ensuring it remains a neutral and attractive destination for investors from both sides. The country’s strong focus on local content laws and sustainable mining practices can help position Tanzania as a stable and attractive mining jurisdiction in this competitive environment.
Driving Growth Through Infrastructure and Strategic Minerals
The revitalization of TAZARA represents a broader vision for Tanzania’s economic future. As President Samia Suluhu Hassan emphasized during the FOCAC meeting, Tanzania seeks to integrate itself into global supply chains, not just through mineral extraction but also through value addition and beneficiation. The improved transportation infrastructure can enable Tanzanian mining companies to reach international markets more easily, ensuring the country reaps greater benefits from its natural resources.
Furthermore, TAZARA’s modernization is expected to stimulate other sectors, such as agriculture and manufacturing, while also creating thousands of jobs for local communities. By reducing reliance on road transportation and increasing cargo volumes, the revitalized railway will lower operational costs for miners and enhance the sustainability of Tanzania’s export infrastructure.
Challenges and Opportunities Ahead
While the TAZARA revitalization offers exciting prospects, it also comes with challenges. Ensuring the long-term viability of the railway will require sound management, competitive pricing, and sustained investment. Additionally, as global powers like the U.S. and China vie for control over strategic minerals, Tanzania must carefully balance these competing interests to maximize its benefits.
As the world continues its transition to green energy and electric mobility, the demand for critical minerals will only increase. By revitalizing TAZARA and improving its transportation infrastructure, Tanzania is positioning itself to play a crucial role in the global supply of these resources. In doing so, the country will not only unlock the full potential of its mining sector but also assert itself as a key player in the ongoing U.S.-China competition over Africa’s strategic mineral wealth.
In conclusion, the TAZARA railway’s revitalization, driven by China’s investment and strategic interests, is a game-changing development for Tanzania’s mining sector. As the U.S. and China continue their race for control of Africa’s strategic minerals, Tanzania stands at the crossroads of opportunity, with the potential to become a central player in the global mineral supply chain. The future of Tanzania’s mining sector is set to be shaped not just by its mineral wealth but also by the infrastructure that supports it, and the global geopolitical forces that surround it.
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