AFC Partners with Angola and Zambia to Propel Zambia Lobito Rail Project Forward
The Africa Finance Corporation has signed agreements with Angola and Zambia to advance the Zambia Lobito Rail Project, aiming to construct an 800-km rail line connecting key ports to facilitate trade across Africa. With support from USTDA, the project will enhance economic benefits, create jobs, and promote regional integration while upholding international environmental standards.
The Africa Finance Corporation (AFC) has solidified its commitment to the Zambia Lobito Rail Project by signing concession agreements with the governments of Angola and Zambia. The ceremonial signing, witnessed by U.S. Secretary of State Antony J. Blinken, took place during the 79th session of the United Nations General Assembly (UNGA 79) and is a pivotal step in facilitating a critical trade corridor connecting the Port of Lobito in Angola to the Port of Dar es Salaam in Tanzania. This significant initiative aims to construct an 800-kilometer rail line that will connect Angola’s Benguela rail line to Zambia’s existing rail infrastructure. The project is poised to enhance the transportation of minerals, metals, and agricultural products while stimulating investments in various sectors including agriculture, health, and digital infrastructure. Moreover, it is expected to generate approximately $3 billion in economic benefits across both nations and create over 1,250 jobs in construction and operations. In conjunction with the concession agreements, the AFC also secured a $2 million grant from the United States Trade and Development Agency (USTDA), which will support the environmental and social studies required for project development. This funding will enable comprehensive Environmental and Social Impact Assessments (ESIA), ensuring adherence to international environmental standards. The partnership is celebrated by key governmental figures: Ricardo Viegas d’Abreu, Angola’s Minister of Transport, emphasized the project’s ability to position Angola as a regional logistics hub, beneficial not only to Zambia but globally. Meanwhile, Frank Tayali, Zambia’s Minister of Transport, highlighted the project’s importance for modernizing infrastructure and enhancing national competitiveness. Samaila Zubairu, President & CEO of AFC, articulated the project’s transformative potential for regional trade, industrialization, and socio-economic growth, reinforcing the AFC’s role as a driver of industrial development in Africa. Ultimately, the Zambia Lobito Rail Project is envisioned as a strategic route that promises to streamline cargo movement from Zambia and the Democratic Republic of the Congo to international markets, thus facilitating economic integration and efficient trade operations in the region.
The Zambia Lobito Rail Project is a significant infrastructure initiative aimed at enhancing transportation and trade between Angola and Zambia, and beyond to the East African coast. By establishing a rail corridor, the project seeks to improve the evacuation of minerals and agricultural products across Africa, thereby bolstering economic growth and creating job opportunities. This initiative receives not only local but also international support, notably from the United States and European institutions, reflecting its importance in regional development and trade facilitation. The strategic objective of the project is to link key mining and agricultural regions to major ports, thereby providing a shorter and efficient route for exports and imports. It signifies a collaborative effort between governments and international agencies to foster economic integration and development in Africa.
The signing of concession agreements between the AFC and the governments of Angola and Zambia for the Zambia Lobito Rail Project marks a significant advancement in improving trade infrastructure in the region. The project not only promises substantial economic benefits and job creation but also aims to streamline transport routes for resources between the interior regions of Africa and international markets. This initiative embodies a commitment to regional development, enhanced trade capabilities, and sustainable economic growth, reflecting broader ambitions of Africa as a global trade partner.
Original Source: www.logupdateafrica.com
