The Africa Finance Corporation (AFC) has signed concession agreements with Angola and Zambia to develop the Zambia Lobito rail project, a vital infrastructure initiative connecting the two countries. The project includes the construction of an 800-kilometer rail line that will enhance regional trade and create economic opportunities, supported by a $2 million grant from the US Trade and Development Agency for environmental assessments. The project could generate approximately $3 billion in economic benefits and create over 1,250 jobs.
The Africa Finance Corporation (AFC) has recently formalized concession agreements with the governments of Angola and Zambia to facilitate the development of the Zambia Lobito rail project. This significant development was marked by a ceremonial signing that took place on September 24, during the seventy-ninth session of the United Nations General Assembly, hosted by US Secretary of State Antony J. Blinken. The signing of these agreements enables AFC to undertake financing, construction, and operational responsibilities for the railway, which aims to connect the Benguela rail line in Angola to the Zambia Railways line in Chingola, Zambia. The Zambia Lobito railway project encompasses approximately 800 kilometers of new rail infrastructure, intended to enhance trade connectivity and promote economic growth in various sectors, including agriculture, mining, and digital infrastructure. Zambia’s Transport Minister, Frank Tayali, expressed optimism regarding the project’s potential to modernize infrastructure, enhance economic competitiveness, and improve citizens’ livelihoods. Moreover, concurrent with the signing of the concession agreements, AFC secured a $2 million grant from the US Trade and Development Agency (USTDA) for environmental and social studies, marking the AFC’s inaugural engagement with USTDA funding. The project promises to establish a vital trade corridor across Africa, facilitating the transport of minerals and other goods from the Port of Lobito to the Port of Dar es Salaam in Tanzania. Estimates suggest that the project will generate economic benefits worth approximately $3 billion and create over 1,250 jobs throughout construction and operation phases. AFC President and CEO Samaila Zubairu highlighted the project’s potential to accelerate industrial development, foster regional integration, and serve as a crucial export route for critical minerals required for the global energy transition.
The Zambia Lobito rail project is a pivotal infrastructure endeavor aimed at enhancing trade links between Angola and Zambia, as well as improving broader regional connectivity across Africa. The project emerged as part of a collaborative effort involving multiple stakeholders, including the US government, the EU, the African Development Bank, and the respective governments of Angola, Zambia, and the Democratic Republic of Congo. The cooperation seeks to establish an efficient transportation corridor that not only supports the movement of goods but also contributes significantly to economic development in the region.
In conclusion, the successful signing of concession agreements for the Zambia Lobito rail project marks a significant step towards revitalizing infrastructure and enhancing economic cooperation between Angola and Zambia. With the backing of international stakeholders and substantial funding for environmental assessments, this project is poised to bring transformative benefits to the region, creating jobs, fostering trade, and providing a crucial export route for essential minerals in the global market.
Original Source: www.engineeringnews.co.za
