AFC Partners with Angola and Zambia on Zambia Lobito Rail Project

The Africa Finance Corporation has signed agreements with Angola and Zambia for the Zambia Lobito Rail Project, aimed at improving trade routes between these countries. The rail corridor will enhance connectivity, significantly benefiting local economies, and is expected to generate about $3 billion in economic impact while reducing emissions and creating jobs. The project is underpinned by strong international partnerships, reflecting a commitment to sustainable development and infrastructure modernization.

The Africa Finance Corporation (AFC) has established concession agreements with the governments of Angola and Zambia to oversee the financing, construction, ownership, and operation of the Zambia Lobito Rail Project. This strategic rail corridor is designed to serve as an alternative route for international export markets, enhancing connections for Zambia and the Democratic Republic of the Congo (DRC). The project aims to create a more direct and efficient path for exports and imports, linking vital mining regions and agricultural sectors in both countries to the Port of Lobito in Angola. The signed agreements on September 24th during a ceremonial event attended by US Secretary of State Antony J. Blinken, along with representatives from the G-7 Partnership for Global Infrastructure and Investment, signify a significant step towards the realization of this railway project. The AFC, having been appointed as the lead developer last year, will collaborate with various international stakeholders, including the US Government, the European Union, and the African Development Bank. Spanning approximately 800 kilometers, the new rail line will connect the existing Zambia Railways Line in Chingola, Zambia, to the Benguela rail line in Luacano, Angola. This corridor is expected to facilitate not only the movement of goods but also support investments across multiple sectors such as agriculture, health, digital infrastructure, mining, and electricity accessibility along its route. Furthermore, concurrent with the concession agreements, AFC secured a $2 million grant from the United States Trade and Development Agency (USTDA) to fund Environmental and Social Impact Assessments (ESIA) for the project, emphasizing the commitment to adhere to international standards and environmental practices. In its official statement, the AFC articulated its crucial role in this initiative, stating that the rail project will significantly enhance the evacuation route for valuable minerals while also creating a trade corridor linking the Atlantic and Indian Oceans. This transformative rail infrastructure is anticipated to generate economic benefits of approximately $3 billion for both Angola and Zambia, reduce carbon emissions by around 300,000 tons annually, and generate over 1,250 jobs in both construction and operational phases. The Ministers of Transport for both countries expressed optimism regarding the impacts of this project. Angola’s Minister Ricardo Viegas d’Abreu affirmed the partnership with AFC would solidify the nation’s status as a logistic hub, facilitating trade with Zambia and the global market. Meanwhile, Zambia’s Minister Frank Tayali emphasized that the project is a pivotal development for modernizing infrastructure and improving local livelihoods. AFC’s President and CEO, Samaila Zubairu, underscored the project’s potential for significant trade growth and regional economic development, reinforcing the collaboration with the Angolan and Zambian governments to deliver this world-class infrastructure.

The Lobito Corridor Project represents a significant infrastructure initiative aimed at enhancing regional connectivity in Southern Africa. It focuses on establishing a rail link between Zambia and Angola, thus facilitating trade between these countries and allowing for efficient export routes to international markets. Given the region’s importance in the mining and agricultural sectors, improved rail infrastructure is critical for economic growth and development. The involvement of the AFC, along with international partnerships, underscores the collaborative efforts required to undertake such a transformative engineering project.

In summary, the signing of concession agreements for the Zambia Lobito Rail Project marks a pivotal step towards enhancing trade and economic development in Southern Africa. Through strategic partnerships and robust infrastructure investment, this initiative promises significant socio-economic benefits for both Angola and Zambia. By enhancing connectivity and facilitating the movement of goods, the Lobito Corridor is expected to become a crucial trade route, bolstering regional integration and promoting sustainable development.

Original Source: www.esi-africa.com