Tanzania Signs $2.15B Deal with China for Railway to Burundi Nickel Mine

Tanzania has signed a $2.15 billion agreement with two Chinese firms to build a railway connecting its main port of Dar es Salaam to a nickel mine in Burundi. Tanzania Railways Corp. awarded the contracts to China Railway Engineering Group Ltd. and China Railway Engineering Design and Consulting Group Co.

Transport Minister Makame Mbarawa stated that the 282-kilometer (175-mile) Uvinza-Musongati standard gauge railway will facilitate nickel exports and enhance cross-border trade between Tanzania and Burundi. The project is part of a broader bilateral agreement between the two nations.

The African Development Bank will finance the railway’s construction through a concessional loan, marking its first investment in Tanzania’s railway sector, according to Finance Minister Mwigulu Nchemba.