The great power competition for tomorrow’s critical mineral supplies will play out in African ports and mines. Despite falling behind China in foreign investment, America has the opportunity to catch up and secure access to the resources that power next-generation military and commercial technologies. But to compete, we must understand China’s role as an alternative lender and developmental partner. Out of all African countries, Tanzania best exemplifies the potential of Chinese engagement as well as the danger that America and its allies could be shut out of an essential supply chain for critical minerals.
China and Tanzania have long enjoyed a close relationship since establishing relations in 1964. In 1970, the two countries began work on the TAZARA rail line. Funded largely by grants from the PRC, the expansive project stretched for over 1,000 miles to connect landlocked Zambia to coastal Tanzania.
The TAZARA railway also became an early test for Beijing’s now-familiar BRI formula. Using Chinese materials, overseen by Chinese firms, and in total employing over 50,000 Chinese workers, the railway offered an opportunity for the PRC to expand its construction industry and diplomatic footprint abroad. Upon its completion in 1975, the rail stood both as an example of successful cooperation between China and other developing countries and as a cornerstone of the burgeoning Sino-Tanzanian relationship. It also created a potential route for natural resource extraction. By linking northern Zambia with Dar es Salaam, Tanzania’s largest city and main port, the TAZARA line could serve to transport copper, cobalt, and other critical minerals from the African interior. Today, the railway is in a state of disrepair, as Tanzania has long sought aid to modernize the line from China. But recently the PRC committed to spending up to $1 billion to modernize the rail line – an investment which could transform TAZARA into the lynchpin of Beijing’s African mineral supply chain.
Port investment is an equally important part of China’s growing critical mineral portfolio. Already, copper from Zambia, cobalt from the Democratic Republic of the Congo, and rare minerals from the northern part of South Africa go through the port of Dar es Salaam to China. At once, this dynamic presents a challenge and opportunity for China. Given the vast quantity of resources flowing through Dar es Salaam, in addition to trade with other countries, the port is crowded and inefficient. But this need for modernization presented a chance for China to improve its raw material supply chain and solidify its presence in Tanzania.
In 2013 the opportunity presented itself. The Tanzanian government and China Merchant Holdings announced a $10 billion deal to redesign and modernize Bagamoyo port, which sits just north of Dar es Salaam. Close enough to the capital for trade to be easily directed and its security guaranteed by a ninety nine year lease to Chinese investors, the Bagamoyo port project would allow the PRC to alleviate its resource congestion issues and gain a foothold on the African continent.
Read the rest at RealClear Defense.
Farrell Gregory is a research assistant at Yorktown Institute.
