Burundi signs $1.4B power deal with US-backed company
The country has deposits of nickel, gold, and rare earths, but lacks the electricity to develop large-scale mining.
Burundi and the US-backed Anzana Electric Group have reached a $1.4 billion electricity agreement, a move aimed at bolstering American supply chains and facilitating mining in the East African nation. Burundi, rich in resources including nickel, gold, and rare earths, has faced challenges in developing large-scale mining due to persistent power shortages, inadequate infrastructure, and the absence of a direct rail link to export markets.
As of 2024, only 20% of Burundians had access to electricity, according to the World Bank. The 25-year agreement, facilitated through Anzana's local partner Weza Power, seeks to extend electrical connectivity to over 1.2 million households and businesses. This follows an earlier US-backed arrangement in March that granted mining company Lifezone Metals from New York exclusive rights to explore Burundi's Musongati nickel deposit, a key material in stainless steel and some electric vehicle batteries.
The United States is actively seeking mineral partnerships in Africa as a means to counter China's growing influence in global supply chains. Recently, US officials announced plans to assist Kenya in establishing its own mineral processing industry.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
