AFC Secures Concession Agreements with Angola and Zambia for…

The Africa Finance Corporation signed concession agreements with the governments of Angola and Zambia for the Zambia Lobito rail project, aimed at constructing a rail connection between the two countries. The initiative, supported by a $2 million USTDA grant, will promote trade, enhance regional logistics, and create economic benefits estimated at $3 billion, reducing emissions and creating jobs in the process.

The Africa Finance Corporation (AFC) has recently entered into concession agreements with the governments of Angola and Zambia to advance the Zambia Lobito rail project. This initiative is pivotal for the financing, construction, ownership, and operation of a rail system set to connect Angola and Zambia. The agreements were formally signed on September 24, during a ceremony attended by U.S. Secretary of State Antony J. Blinken, which took place alongside the seventy-ninth session of the United Nations General Assembly. Angola’s Transport Minister, Ricardo Viegas d’Abreu, expressed enthusiasm about the project, stating, “We are pleased to partner with AFC on this transformative project, which will deepen our nation’s role as a regional logistics hub, boosting trade not only with Zambia but with the rest of the world.” Previously appointed as the lead developer in collaboration with various global entities, including the U.S. government and the European Union, AFC’s rail project entails establishing approximately 800 km of greenfield rail line. This line will connect the existing Benguela rail line in Luacano, Angola, to the Zambia Railways line in Chingola, Zambia. Once completed, this corridor aims to enhance the movement of goods, facilitating trade and investment across sectors including agriculture, healthcare, digital infrastructure, mining, and energy access. Zambia’s Transport Minister, Frank Tayali, remarked, “The Zambia Lobito rail project is an important milestone in our efforts to modernise infrastructure, enhance the competitiveness of our economy and improve the livelihoods of our people.” In parallel to the concession agreements, AFC secured $2 million in grant funding from the U.S. Trade and Development Agency (USTDA), marking its first engagement with this funding source. This grant will support the completion of essential environmental and social studies, ensuring compliance with international standards. AFC’s role will be central in developing an efficient evacuation route for minerals from the region, establishing a vital trade corridor from the Port of Lobito in Angola to Dar es Salaam in Tanzania, thus facilitating broader intra-African and global trade. This project is expected to yield approximately $3 billion in economic benefits for both nations, reduce greenhouse gas emissions by about 300,000 tons annually, and create over 1,250 jobs throughout the construction and operational phases. AFC president and CEO, Samaila Zubairu, emphasized the importance of the Zambia Lobito rail project, stating, “The Zambia Lobito rail project represents a game-changing development for the region, unlocking tremendous potential for trade, industrialisation and socioeconomic growth.” This corridor is poised to serve as a strategic route for Zambia and the Democratic Republic of Congo (DRC), facilitating trade and connecting key mining and agricultural areas to international markets. The project is anticipated to enhance cargo transport from the Copperbelt region through to Western markets via Angola.

The Zambia Lobito rail project is an ambitious infrastructure initiative aimed at improving transportation links between Zambia and Angola. With a focus on enhancing trade capabilities and facilitating economic growth, the project emerges as a significant undertaking in the context of regional development and integration. It is supported by multiple international partners and financial institutions, reflecting a collaborative approach to infrastructure development in Africa. The project not only aims to modernize transport infrastructure but also seeks to align with global best practices in environmental and social standards.

The concession agreements signed by the Africa Finance Corporation with Angola and Zambia represent a significant advancement in the Lobito rail project. This initiative is designed to enhance trade and economic integration between the two countries while also paving the way for further investments in various sectors. With substantial economic benefits anticipated, alongside the creation of jobs and reduction in emissions, the project stands to have a transformative impact on regional infrastructure and economic landscape.

Original Source: www.engineeringnews.co.za