Africa Finance Corporation (AFC) has signed significant concession agreements with Angola and Zambia governments to develop the Zambia Lobito Rail Project, which will establish an 800 km railway corridor enhancing trade and economic growth. This initiative, backed by a USD 2 million USTDA grant, aims to create over USD 3 billion in economic benefits and improve regional logistics while adhering to environmental standards.
In a notable achievement for the Zambia Lobito Rail Project, the Africa Finance Corporation (AFC) has formalized concession agreements with the governments of Angola and Zambia, aimed at financing, constructing, owning, and operating what is set to be a transformational railway initiative. This significant event transpired during a ceremonial signing, which was presided over by U.S. Secretary of State Antony J. Blinken, alongside the Biden Administration’s G-7 Partnership for Global Infrastructure and Investment, at the 79th session of the United Nations General Assembly (UNGA 79) on September 23rd. In 2022, AFC was designated as the lead developer for this project in partnership with the United States Government, the European Union, the African Development Bank, and the respective governments of Angola, the Democratic Republic of Congo, and Zambia. The project encompasses the construction of an approximately 800-kilometer new railway line that will connect the Benguela railway line in Luacano, Angola, to the existing Zambia Railways line in Chingola, Zambia. Upon completion, this trade corridor will significantly enhance the efficient transit of goods and encourage investments across various sectors, including agriculture, healthcare, digital infrastructure, mining, and energy access. In conjunction with the signing of the concession agreements, AFC secured a grant of USD 2 million from the United States Trade and Development Agency (USTDA) to support the environmental and social studies necessary for the project. This grant is noteworthy as it marks the first instance of AFC utilizing USTDA funding, facilitating comprehensive Environmental and Social Impact Assessments (ESIA) to ensure adherence to international standards and environmental practices. AFC’s role as the lead developer is crucial as the railway will not only provide an efficient route for mineral and metal transportation from the region but also establish a vital trade corridor across Africa, linking the Port of Lobito on the Atlantic coast with the Port of Dar es Salaam on the Indian Ocean. This railway initiative is anticipated to yield economic benefits amounting to approximately USD 3 billion across both nations, reduce emissions by around 300,000 tons annually, and create over 1,250 jobs throughout its construction and operational phases. The Honourable Ricardo Viegas d’Abreu, Minister of Transport for Angola, 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 Frank Tayali MP, Minister of Transport for Zambia, remarked, “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.” Samaila Zubairu, President & CEO of the Africa Finance Corporation, noted, “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.” By establishing a strategic alternative route to international export markets for Zambia and the Democratic Republic of Congo, this railway will link key mining areas, agricultural hubs, and businesses, streamlining cargo movement from central provinces through Angola to the Western markets.
The Zambia Lobito Rail Project is a large-scale railway development initiative designed to enhance transportation infrastructure between Angola and Zambia. The project entails an approximately 800-kilometer railway that connects Angola’s Benguela rail line to Zambia’s existing railway network. This undertaking not only aims to improve trade efficiency in the region but also seeks to create significant economic, environmental, and social impacts by boosting investment opportunities and facilitating the movement of goods across much of Southern Africa. The involvement of multiple international finance and development organizations highlights the project’s importance in achieving regional integration and economic development.
The signing of the concession agreements for the Zambia Lobito Rail Project marks a pivotal moment in enhancing regional transportation and trade capabilities. The collaboration between AFC, the governments of Angola and Zambia, and various international entities underscores the project’s potential to generate considerable economic benefits, reduce environmental impact, and create employment opportunities. The anticipated outcomes demonstrate the strategic importance of this railway in bridging critical markets and promoting sustainable development across Africa.
Original Source: www.railwaysafrica.com
