The US is roping Tanzania into the mooted Lobito Corridor project to tap the Kabanga nickel deposit, but with a wider focus on rivalry with China in areas where development will take place.
The details emerged this week as Washington spoke of the importance of Tanzania in helping to link the corridor from the Atlantic to the Indian Ocean, making it easier for investments in natural resources lying in Angola, the Democratic Republic of Congo, Zambia and Tanzania.
In Tanzania, however, Washington wants to tap into the country’s minerals, particularly its nickel mines.
Located in north-western Tanzania, some 120km south-west of Lake Victoria and near the border with Burundi, the Kabanga deposit is considered to be one of the largest and richest undeveloped nickel sulphide deposits known at present, of unrivalled scale and grade.
These deposits have been explored and delineated by mining companies, but remain undeveloped due to their distance to the Indian Ocean coast and a lack of transport and energy infrastructure.
Nickel, a silvery metal that resists corrosion even at high temperatures, is used to coat other metals to protect them. But it is most commonly used to make alloys such as stainless steel.
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The Lobito Corridor links the mining areas of Angola, Zambia and the DR Congo.
The extension of the Lobito Corridor into the DRC and the integration of Tanzania into the route’s investment is part of the progress towards the vision of a Trans-Africa Corridor from the Atlantic to the Indian Ocean.
PGI initiative
“Part of why we think this project is so special and why it’s such an important investment in Tanzania’s economic diversification and our commitment to help deliver these private sector investments is that it’s more than helping support bringing online an important nickel project,” said Helaina Matza, acting US Special Coordinator for the Partnership for Global Infrastructure and Investment, in a virtual interview with The EastAfrican during her visit to Dar es Salaam and the DRC on August 21 to 28.
“Although, unto itself, that would be an excellent contribution; but it’s working on the connection between Kabanga and Kahama, and working how to develop a special economic zone that not only creates opportunities for processing here in country – the nickel products coming out but hopefully more feedstock from other parts of the country and the region, while investing at the same time in training of local Tanzanians to participate in every part of the value chain of that industry.”
The Lobito Corridor is the first strategic global infrastructure and investment economic corridor launched by US President Joe Biden at the G7 Summit in Japan in May 2023.
It is part of the G7’s flagship initiative, the G7 Partnership for Global Infrastructure and Investment (PGI).
The project comprises 550 kilometres of railway in Zambia from the Jimbe border to Chingola on the Zambian copperbelt, and 260km of main feeder roads within the corridor. These are the first two phases of the project.
The new infrastructure development plan, conceived by a consortium of investors led by the PGI initiative, is rapidly emerging as a rival to China’s Belt and Road Initiative (BRI) in the region. But Washington’s funding model is different, relying on the consortium and various financiers rather than a government guarantee or a single contractor anointed by the financier.
Funding models
In addition to connecting Tanzania to the Lobito corridor, the mines have also inspired the extension of the Central Corridor route from the existing railhead at Isaka in Tanzania to Kigali in Rwanda and Gitega in Burundi.
China is also investing in key infrastructure in these mining areas, and is even renovating the old Tazara railway which it built in the 1970s.
“But now we’re ready for phase three, and that includes deepening our engagement in DRC, expanding those economic benefits to Tanzania, and then thinking about, beyond the rail, what sectors, can offer the best opportunities for our support as they reflect the development growth needs and desires of the countries we’re working in,” said Ms Matza.
“So this development of 800 kilometres of greenfield rail is the most ambitious commercially led infrastructure on the continent that the US has supported.
For DRC and Tanzania, and the broader region, we hope this means more opportunity and sustained economic growth across all these sectors.”
The US has made new financing commitments totalling $360 million for the construction of the Lobito Corridor, although there is no specific funding model for the project.
“There’s not one funding model for the Lobito Corridor project. And that’s because the corridor is composed of many different projects layered on top of each other
some identified and negotiated with our partners in the G7 with our host countries, others directly by us, and then several in partnership,” said Ms Matza.
“What we’re doing with our investment in the backbone rail and these first initial projects is trying to catalyse what we hope will be continued in increasingly more private investment across all these sectors.”
She added: “Otherwise, every project will look a bit different. Some will require USAid grant support.
Some will require just political risk insurance. And it’s our job as a partnership to identify the right tools for the right project.”
Lobito shipments
She said the US, along with its partners from the European Union, the Italian government, the African Development Bank and the project developer, the Africa Finance Corporation, had developed a new way of financing the railway.
“And what we thought the best place to begin was where we had an opportunity to support a refurbishment of an existing rail line, and that included DFC’s initial $250 million commitment to finance a Western consortium in refurbishing and operating the Benguela rail line across Angola and to upgrade key portions of that rail line in DRC,” she said.
DFC is the US government’s development finance institution.
The part of the rail that the Biden’s administration has financed is the refurbishment of the line that connects DRC to the Port of Lobito in Angola.
Several shipments have already been made, including the first shipment of copper to Baltimore recently.
Part of phase two was set up through a seven-sided MoU that was signed in October 2023, which brought in the US, the EU, and AFC to support the project development, with the US mobilising $10m to kick-start the feasibility study.
“In the meantime, fundraising is underway. The Africa Development Bank has committed $500 million, while Italy, which hosted the now annual G7 PGI side event, has pledged $320 million towards the project,” said Ms Matza.
“The DFC has committed an additional $250 million to support AFC’s broader infrastructure development efforts, and we are starting to bring together other lenders and supporters and ways to potentially pre-book capacity on this rail to make this deal as commercial as it can be with the support it requires to get over the finish line.”
She said the US, along with its partners from the European Union, the Italian government, the African Development Bank and the project developer, the Africa Finance Corporation, had developed a new way of financing the railway.
“And what we really thought the best place to begin was where we had an opportunity to support a refurbishment of an existing rail line, and that included DFC’s initial $250 million commitment to finance a Western consortium in refurbishing and operating the Benguela rail line across Angola and to upgrade key portions of that rail line in DRC,” she said. DFC is the US government’s development finance institution.
The part of the rail that the Biden’s administration has financed is the refurbishment of the line that connects DRC to the Port of Lobito in Angola.
Several shipments have already been made, including the first shipment of copper to Baltimore recently.
Part of phase two was set up through a seven-sided MoU that was signed in October 2023, which brought in the US, the EU, and AFC to support the project development, with the US mobilising $10m to kick-start the feasibility study.
“In the meantime, fundraising is underway. The Africa Development Bank has committed $500 million, while Italy, which hosted the now annual G7 PGI side event, has pledged $320 million towards the project,” said Ms Matza.
“The DFC has committed an additional $250 million to support AFC’s broader infrastructure development efforts, and we are starting to bring together other lenders and supporters and ways to potentially pre-book capacity on this rail to make this deal as commercial as it can be with the support it requires to get over the finish line.”
“What we’re doing is not trying to expand upon the debt of the countries we’re working in.
We’re not trying to work against that balance sheet,” she said.
During her visit to Tanzania, Ms Matza met and held talks with Chris Showalter, the chief executive officer of Lifezone Metals Limited, a subsidiary of Kabanga Nickel Project, and Anthony Mavunde, Tanzania’s Minister for Minerals.
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Britam half-year net profit hits Sh2bn on higher investment income
Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.
The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.
“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.
“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”
The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.
Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.
The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.
Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.
The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.
Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.
“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.
Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.
Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.
CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.
Inside Tanzania’s Life-Saving Birthcare Model
Tanzania is winning the battle against maternal and newborn deaths, as the latest numbers reveal a significant decline.
“Tanzania is committed to reducing maternal and newborn mortality and ensuring safe deliveries as part of the national development plan. The Safer Births Bundle of Care is one of the key strategies supporting this effort,” said Dr. Benjamin Kamala, the Senior Research Scientist at Haydom Lutheran Hospital and Principal Investigator for the program, leading its implementation across five regions in Tanzania.
A groundbreaking study published in the New England Journal of Medicine shows that the innovative health program in Tanzania – centered on regular, on-the-job training for healthcare workers – reduced maternal deaths by 75% and early newborn deaths by 40%. The three-year study, conducted across 30 high-burden healthcare facilities in Tanzania, tracked approximately 300,000 mother-baby pairs under the Safer Births Bundle of Care (SBBC) programme. The programme focuses on improving care for mothers and babies during the day of birth, the critical time when a woman goes into labor and delivers her baby.
Maternal health is a key focus of the United Nations Sustainable Development Goals (SDGs), specifically Target 3.1, which aims to reduce the global maternal mortality ratio to fewer than 70 deaths per 100,000 live births by 2030.
Tanzania’s program combines continuous, simulation-based training for frontline healthcare workers alongside innovative clinical tools to improve labour monitoring (fetal heart rate monitoring) and newborn resuscitation.It also uses data to drive ongoing improvements, ensuring that healthcare workers have the skills, confidence, and competence to manage birth-related complications for both mothers and newborns.
“We work closely with healthcare workers, equipping them with the necessary tools to improve the quality of care, ensuring they can effectively manage both mothers and babies during and after childbirth,” Dr. Kamala said, which helps them build on over a decade of innovative research and collaboration to improve care during childbirth.
“To give you a sense of the scale of the burden of maternal and newborn mortality in Tanzania when the Safer Births Bundles of Care program was in early development in 2015/16, there were around 556 maternal deaths per 100,000 live births and 25 neonatal deaths per 1,000 live births,” he said.
The published study demonstrates the “transformative impact” of the Safer Births Bundle of Care program conducted across 30 hospitals in five high-burden regions of Tanzania, where there were about 300,000 mother-baby pairs.
Maternal deaths at the start of the program were recorded at 240 per 100,000 live births, with postpartum hemorrhage and hypertensive disorders being the leading causes of death, he said. Over the 24-month study period, this number dropped to approximately 60 per 100,000 live births, representing a 75% reduction. The number of newborn deaths – which are primarily due to breathing difficulties and complications related to prematurity – declined by 40% – from 7 deaths per 1,000 live births to 4 deaths per 1,000 live births.
“These results are remarkable,” Dr. Kamala said.
According to Dr. Kamala, the 75% reduction in maternal deaths was not expected, and a key lesson was the important role of the in-situ team simulations – including for postpartum bleeding – with reflective debriefings that trained facilitators led.
“This seems to be a major part of the success of the program,” he said. “We are delighted by these results and hope that other countries adopt and scale the Safer Births Bundle of Care program… Beyond the numbers, the Safer Births Bundle of Care program has fostered a dramatic culture shift in our healthcare system,” he said. “Healthcare workers are now more confident and better equipped to handle birth-related complications for both mothers and babies.”
Maternal death drop
Dr. Kamala attributed the 60-70% reduction in newborn deaths in Geita and Manyara to several factors.
“Firstly, Manyara was the first site for implementation, giving the region more time to adapt and experience the impact of the program. Most importantly, both regions had a high burden of stillbirths and neonatal deaths, making them ideal targets for focused intervention. As a result, newborn deaths decreased by 60-70%, showcasing a clear positive impact on newborn survival,” he said.
Dr. Kamala said another possible explanation is the differences in the culture of practices, where some health facilities reported inaccurate data due to the fear of blame and shame. However, with the project’s implementation, reporting became more accurate after mplementation. Some regions, such as Tabora, reported an increase in the number of referrals to the study hospitals from other care centers after the program was implemented. These were more likely to be late admissions, which increase the likelihood of poor health outcomes, he said.
After the implementation of the program, there was a 40% decrease in newborn deaths within the first 24 hours after birth, according to the study.
Dr. Kamala said Tanzania’s remarkable progress in reducing maternal mortality by 80% is driven by strategic investments and innovative programs focused on improving maternal and child survival rates.
“Over 2,000 new healthcare facilities have been developed, free health services are being provided to expectant mothers and children under the age of five, and emergency obstetric care – including better transport to hospitals in rural areas are helping to ensure timely, life-saving interventions.
“Most importantly, the Ministry of Health works in collaboration with healthcare workers, hospitals, and development partners to strengthen the skills of frontline healthcare workers, which has been a key factor in driving this progress.
“Political leadership, alongside strategic partnerships and financing, has been crucial in driving progress in maternal and newborn health,” he said.
The program was made possible by the support of the Global Financing Facility for Women, Children, and Adolescents, Norad, UNICEF, and Laerdal Global Health, as well as the Ministry of Health and Haydom Lutheran Hospital. Their partnership and investment enabled the scaling of the Safer Births Bundle of Care to 30 hospitals and supported the research. “The government has now scaled the program to over 150 sites, and there are plans for further expansion to three regions this year and then nationally,” he said.
Dr. Kamala outlined key policy recommendations for other governments can adopt to prioritize maternal health.
“Firstly, it focuses on cost-effective and relatively simple interventions that are essential to preventing maternal and newborn deaths. For example, stronger primary healthcare that is delivered in the community and a well-trained healthcare workforce are also critical. Additionally, working in close collaboration with national, regional, and local health authorities is key.”
He said Tanzania’s approach, where the Safer Births Bundle of Care program was successfully scaled and sustained by aligning the initiative with national guidelines for obstetrical and newborn care. In addition, the creation of mentorship programs and regular supervision has helped to sustain the results.
Looking ahead
Tanzania now plans to expand to three new regions in 2025, followed by a nationwide rollout.
The success of the program has attracted interest from other countries, with Botswana, Ethiopia, Lesotho, and Namibia expressing interest in adapting the program to their healthcare system. In Nigeria, the program has already been launched in two states, Gombe and Borno, marking a significant step in its scaling.
Source: allafrica.com
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