AFC Secures Concession Agreements with Angola and Zambia for…

Africa Finance Corporation (AFC) has signed concession agreements with Angola and Zambia to lead the Zambia Lobito Rail Project, which involves an 800-kilometer railway connecting Angola to Zambia. The project aims to promote trade, create jobs, and establish a vital export route, with financial support from the United States. AFC will oversee environmental assessments to ensure compliance with global standards.

In a noteworthy advancement for the Zambia Lobito Rail Project, the Africa Finance Corporation (AFC) has secured concession agreements with the governments of Angola and Zambia. These agreements, formalized on the 23rd during a ceremonial event hosted by U.S. Secretary of State Antony J. Blinken alongside the Biden Administration’s G-7 Partnership for Global Infrastructure and Investment (PGI) at the 79th session of the UN General Assembly, empower AFC to lead the financing, construction, ownership, and operational aspects of this transformative railway initiative. AFC’s designation as the lead developer on this project occurred last year, with support from the United States Government, the European Union, the African Development Bank, and the governments of Angola, the Democratic Republic of Congo, and Zambia. The endeavor involves the establishment of an approximately 800-kilometer greenfield rail line that will connect the Benguela rail line in Luacano, Angola, to the existing Zambia Railways Line in Chingola, Zambia. Upon completion, this trade corridor is poised to enhance the efficient transit of goods, thereby fostering investments across various sectors, including agriculture, health, digital infrastructure, mining, and electricity access along the route. In conjunction with the signing of the concession agreements, AFC has also obtained a US$ 2 million grant from the United States Trade and Development Agency (USTDA) to support the environmental and social studies requisite for the project. This grant represents the inaugural instance of AFC utilizing USTDA funding, which will facilitate comprehensive Environmental and Social Impact Assessments (ESIA) to ensure adherence to international standards and environmental best practices. As the lead developer, AFC will be instrumental in establishing a transportation route that not only enables the efficient evacuation of minerals and metals from the region but also forms a comprehensive trade corridor across Africa, connecting the Port of Lobito on the Atlantic Ocean to the Port of Dar es Salaam in Tanzania on the Indian Ocean. This initiative is anticipated to generate approximately $3 billion in economic benefits across both Angola and Zambia, reduce emissions by approximately 300,000 tons per year, and create over 1,250 jobs encompassing construction and operational roles. The Honourable Minister of Transport for Angola, Mr. Ricardo Viegas d’Abreu, expressed, “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, boosting trade not only with Zambia but with the rest of the world.” Similarly, the Honourable Minister of Transport for Zambia, Mr. Frank Tayali MP, stated, “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. We look forward to partnering with Africa Finance Corporation to deliver on this groundbreaking project.” AFC President and CEO, Samaila Zubairu, remarked, “The Zambia Lobito Rail Project represents a game-changing development for the region, unlocking tremendous potential for trade, industrialisation, and socio-economic growth. AFC is proud to partner with the governments of Angola and Zambia to deliver world-class rail infrastructure, which will accelerate industrial development in Africa, promote regional integration and provide a vital export route for copper and other critical minerals for the global energy transition.” Furthermore, the corridor will create an alternative strategic route for international markets for Zambia and the Democratic Republic of Congo. This route will stand out as the most direct path for exports and imports, linking significant mining areas, agricultural sites, and commercial enterprises in Zambia and the Democratic Republic of Congo to the Port of Lobito, thereby greatly enhancing cargo movement from the Copperbelt and Northwestern Provinces through Angola to Western markets.

The Zambia Lobito Rail Project is a crucial infrastructure initiative aimed at developing a railway corridor that connects Zambia with Angola, thereby facilitating trade and enhancing economic growth in the region. The project is supported by several international stakeholders, emphasizing its strategic importance for regional integration and economic development in Southern Africa.

The signing of the concession agreements by AFC with Angola and Zambia marks a significant step toward realizing the Zambia Lobito Rail Project, which promises to enhance trade, support infrastructural development, and provide substantial economic benefits. The project’s focus on international standards and environmental practices further reflects a commitment to sustainable development in the region.

Original Source: www.railwaysafrica.com