AFC Signs Agreements for Zambia Lobito Rail Project to Enhance…

The Africa Finance Corporation (AFC) has signed concession agreements with Angola and Zambia for the Zambia Lobito Rail Project. This corridor will provide a vital route for exports and imports, linking key areas to the Port of Lobito. It aims to enhance trade, create economic benefits estimated at $3 billion, and generate over 1,250 jobs. AFC has also secured $2 million from the USTDA for environmental studies related to the project.

The Africa Finance Corporation (AFC) has officially entered into concession agreements with the governments of Angola and Zambia, marking a pivotal step towards financing, constructing, owning, and operating the Zambia Lobito Rail Project. This strategic corridor will serve as an essential alternative route to international export markets, directly benefiting Zambia and the Democratic Republic of the Congo (DRC). It will establish the most direct transit route for exports and imports, effectively connecting significant mining areas, agricultural sectors, and enterprises in both Zambia and DRC to the Port of Lobito. The movement of cargo from the Copperbelt and Northwestern Provinces across Angola to the Western markets will be notably enhanced. The ceremonial signing of these agreements took place on September 24 in the presence of US Secretary of State Antony J. Blinken and representatives from the Biden Administration’s G-7 Partnership for Global Infrastructure and Investment during the 79th session of the United Nations General Assembly (UNGA 79). This collaborative effort positions AFC as the lead developer for the railway project, supported by the US Government, European Union, African Development Bank, and the respective governments of Angola, DRC, and Zambia. The project entails the construction of an 800-kilometer greenfield railway linking the Benguela Rail Line in Luacano, Angola, to the existing Zambia Railways Line in Chingola, Zambia. Upon its completion, this trade corridor will not only streamline the transportation of goods but will also foster investments across various sectors, including agriculture, health care, digital infrastructure, mining, and energy access along the corridor. Alongside the concession agreements, AFC secured a grant of $2 million from the United States Trade and Development Agency (USTDA) to support the completion of environmental and social studies essential for the project’s execution. This marks the AFC’s first engagement with USTDA funding, aimed at conducting comprehensive Environmental and Social Impact Assessments (ESIA) to ensure adherence to international standards. “AFC will play the pivotal role of lead developer on the rail project which not only offers an efficient evacuation route for minerals and metals from the region but helps establish a trade corridor across Africa from the Port of Lobito… to the Port of Dar es Salam in Tanzania,” stated a representative from the Corporation. The anticipated socio-economic impact of the Lobito corridor is substantial, projected to generate approximately $3 billion in economic benefits across Angola and Zambia, reduce annual emissions by about 300,000 tons, and create over 1,250 jobs across construction and operational phases. Transport Minister for Angola, Ricardo Viegas d’Abreu, expressed positivity regarding the partnership with AFC, stating, “We are pleased to partner with Africa Finance Corporation on this transformative project which will deepen our nation’s role as a regional logistics hub.” Similarly, Frank Tayali, the Minister of Transport for Zambia, mentioned the importance of the project in promoting infrastructure modernization, economic competitiveness, and improving citizens’ livelihoods. Samaila Zubairu, President & CEO of AFC, referred to the initiative as a game-changing development that unleashes massive potential for trade and industrialization, asserting, “AFC is proud to partner with the governments of Angola and Zambia to deliver world-class rail infrastructure… for the global energy transition.”

The Zambia Lobito Rail Project is a critical infrastructure initiative designed to enhance trade and connectivity between Zambia, Angola, and the DRC. This project aligns with goals of improving transportation links for export and import activities in the region, particularly for vital sectors such as mining and agriculture. The collaboration with international partners and funding bodies signifies a commitment to international best practices in environmental and social governance, which are increasingly crucial in large infrastructure projects. AFV’s role as lead developer showcases its influence in driving African development through vital infrastructural investments.

The agreements signed between AFC and the governments of Angola and Zambia signify a significant advancement in regional infrastructure development. The Zambia Lobito Rail Project is set to enhance trade efficiencies, create economic opportunities, and promote sustainable practices. With substantial backing from international partners and a focus on socio-economic benefits, this initiative represents a transformative step towards improved connectivity and regional integration in Africa.

Original Source: www.esi-africa.com