The Africa Finance Corporation has signed concession agreements with Angola and Zambia to finance the Zambia Lobito rail project, which aims to improve trade connectivity between the two nations. The project, which connects Angola’s Benguela rail line to the Zambian rail system, is set to create significant economic benefits and enhance regional trade. A $2-million grant from the USTDA has been allocated for environmental studies as part of this initiative.
On September 24, 2023, the Africa Finance Corporation (AFC) entered into concession agreements with the governments of Angola and Zambia aimed at advancing the Zambia Lobito rail project. This monumental signing occurred during a ceremony attended by US Secretary of State Antony J. Blinken and was part of the G7 Partnership for Global Infrastructure and Investment, taking place alongside the seventy-ninth session of the United Nations General Assembly. The AFC will lead the financing, construction, ownership, and operation of the railway, which spans approximately 800 kilometers. The Zambia Lobito rail project seeks to connect the Benguela rail line in Luacano, Angola, with the Zambia Railways line in Chingola, Zambia. The completion of this corridor is expected to enhance trade capabilities between Zambia and Angola, significantly facilitating the movement of goods and fostering investments across various sectors, including agriculture, health, digital infrastructure, mining, and energy. Officials from both nations emphasized the transformative impact of the project, with Angola’s Transport Minister, Ricardo Viegas d’Abreu, expressing satisfaction about the partnership with AFC, stating that it would bolster Angola’s regional logistics capacity. Similarly, Zambia’s Transport Minister, Frank Tayali, highlighted the project as a milestone in the modernization of their infrastructure, which would improve the economy and residents’ livelihoods. In collaboration with these agreements, the AFC secured a $2-million grant from the US Trade and Development Agency to fund environmental and social studies related to the project. This funding signifies the first engagement of AFC with USTDA and aims to ensure that the project adheres to environmental best practices.
The Zambia Lobito rail project is a significant infrastructure development designed to improve connectivity and trade across southern Africa. As part of a broader effort to enhance regional logistics and economic growth, the AFC takes a leading role in this initiative, collaborating with multiple international and local stakeholders. The rail line will serve as a crucial trade corridor, linking key agricultural and mining regions to major ports, thereby promoting both local and global trade. The project aligns with ongoing efforts to modernize African infrastructure and integrate economies more effectively within the continent.
The signing of concession agreements for the Zambia Lobito rail project marks a significant step toward enhancing regional trade and infrastructure development in Southern Africa. With the AFC as the lead developer, this project is poised to create an economic impact of approximately $3 billion, while also facilitating crucial exports and improving the livelihoods of many. The alignment of international support, particularly from the US, bodes well for the project’s adherence to best practices and sustainable development.
Original Source: www.engineeringnews.co.za
