The Africa Finance Corporation has signed concession agreements with Angola and Zambia for the Zambia Lobito Rail Project, which will establish a new rail corridor facilitating trade and economic growth between these nations and the Democratic Republic of the Congo. With an investment generating around $3 billion in economic benefits, the project represents a major stride in enhancing regional infrastructure and connectivity, backed by international support, including a $2 million grant from the USTDA for environmental studies.
The Africa Finance Corporation (AFC) has officially entered into concession agreements with the governments of Angola and Zambia, marking a significant step in the financing, construction, ownership, and operation of the Zambia Lobito Rail Project. This strategic corridor is set to serve as an alternative route to international export markets for both Zambia and the Democratic Republic of the Congo (DRC). It aims to establish the most direct path for importing and exporting goods, effectively linking vital mining areas, agricultural sectors, and commercial entities in Zambia and DRC to the Port of Lobito in Angola. With this new corridor, the transportation of cargo from the Copperbelt and Northwestern Provinces will be significantly streamlined as it connects through Angola to Western markets. The ceremonial signing of these agreements took place on September 24, under the auspices of US Secretary of State Antony J. Blinken, alongside the G-7 Partnership for Global Infrastructure and Investment, during the 79th session of the United Nations General Assembly (UNGA 79). This collaboration sets the stage for AFC to lead the development of the railway project, which was previously designated as the lead developer involving various stakeholders, including the US Government, the European Union, and the African Development Bank. The project encompasses the construction of an approximately 800-kilometer greenfield railway corridor 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 anticipated to enhance logistical efficiency for goods movement and bolster investments across multiple sectors, including agriculture, health, digital infrastructure, mining, and electricity accessibility along the corridor. In conjunction with signing the concession agreements, AFC secured a $2 million grant from the United States Trade and Development Agency (USTDA) to assist in conducting environmental and social studies associated with the project. This funding will enable the Corporation to perform comprehensive Environmental and Social Impact Assessments (ESIA), ensuring alignment with international best practices and environmental standards. Samaila Zubairu, the President and CEO of AFC, emphasized that, “AFC will play the pivotal role of lead developer on the rail project which not only offers an efficient evacuation route for minerals and metals from the region but helps establish a trade corridor across Africa from the Port of Lobito on the coast of the Atlantic Ocean to the Port of Dar es Salaam in Tanzania on the coast of the Indian Ocean, facilitating global and intra-African trade.” The Lobito corridor is poised to generate substantial economic benefits, estimated at approximately $3 billion for both Angola and Zambia, while also facilitating a reduction in carbon emissions by around 300,000 tons per annum, and creating over 1,250 jobs across various stages of construction and operation. The Angolan Minister of Transport, Ricardo Viegas d’Abreu, expressed optimism regarding the partnership with AFC, stating, “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.” Zambian Minister of Transport Frank Tayali further noted the importance of the project in modernizing infrastructure and enhancing economic competitiveness. He remarked that this initiative represents a significant milestone in improving the livelihoods of local populations. The AFC’s initiative is anticipated to not only transform the transport landscape in the region but also facilitate industrialization and economic growth across Southern Africa, making it a vital project for the future of trade in the area.
The Zambia Lobito Rail Project is a crucial infrastructure initiative aimed at enhancing trade connectivity and efficiency in Southern Africa. The construction of this railway corridor is expected to provide an effective means of transporting goods from the mineral-rich regions of Zambia and the DRC to international markets via the Port of Lobito. The project also signifies an important collaboration between various international and regional stakeholders, highlighting the growing emphasis on infrastructure development to drive economic growth and regional integration in Africa.
In conclusion, the AFC’s signing of concession agreements with Angola and Zambia for the development of the Lobito corridor is a pivotal development in facilitating trade and infrastructure modernization in Southern Africa. By creating a strategic rail link between key mining regions and international markets, the project is set to generate significant economic benefits, enhance operational efficiencies, and contribute to sustainable development objectives. The collaborative efforts among government entities and international agencies underscore the commitment to fostering growth and improving livelihoods in the region.
Original Source: www.esi-africa.com
