The Africa Finance Corporation signed concession agreements with Angola and Zambia to lead the Zambia Lobito rail project, enhancing trade connectivity and economic growth in both nations. The project entails construction of a new 800 km rail link, expected to yield about $3 billion in economic benefits and create over 1,250 jobs. It also aligns with sustainability standards, gaining support from the USTDA for environmental studies.
The Africa Finance Corporation (AFC) has formalized its commitment to the advancement of the Zambia Lobito rail project by signing concession agreements with the governments of Angola and Zambia. This important milestone occurred on September 24, during a ceremonial event attended by US Secretary of State Antony J. Blinken, as part of the Biden Administration’s G7 Partnership for Global Infrastructure and Investment, held alongside the seventy-ninth session of the United Nations General Assembly. AFC’s role as the lead developer will facilitate the financing, construction, ownership, and operation of the railway. The project entails the establishment of approximately 800 kilometers of new rail line that will link the Benguela rail line in Luacano, Angola, with the existing Zambia Railways line at Chingola, Zambia. This railway corridor is poised to enhance trade connectivity, thereby fostering economic growth in various sectors such as agriculture, health, digital infrastructure, mining, and electricity along the route. Both Angola and Zambia have expressed optimism regarding the project’s potential to strengthen their capacities as regional logistics hubs. Angola’s Transport Minister, Ricardo Viegas d’Abreu, commented on the significance of this transformative project for trade enhancement. Similarly, Zambia’s Transport Minister, Frank Tayali, noted that the project represents a critical step towards the modernization of infrastructure and improved economic competitiveness. In addition to the concession agreements, AFC secured a $2 million grant from the US Trade and Development Agency (USTDA) intended for environmental and social studies related to the project. This grant marks the first instance of AFC utilizing USTDA funding and underscores a commitment to align the project with international environmental standards. Projected economic benefits of the Zambia Lobito rail project include an estimated $3 billion across both nations, a reduction in carbon emissions by approximately 300,000 tonnes annually, and the creation of over 1,250 jobs in construction and operations. As AFC President and CEO, Samaila Zubairu, highlighted, this project is a significant catalyst for regional industrialization and socioeconomic growth, emphasizing its role in facilitating a critical trade corridor across Africa, connecting the Port of Lobito on the Atlantic coast to the Port of Dar es Salaam on the Indian Ocean. This initiative not only promises to improve logistics and economic opportunities for Zambia and the Democratic Republic of the Congo but also aims to provide an alternative and efficient export route to international markets for mineral resources, notably copper. With the signing of these agreements, the Zambia Lobito rail project stands as a testament to collaborative efforts in enhancing infrastructure and promoting trade within the region, with broader implications for economic integration across Africa.
The Zambia Lobito rail project is a strategic initiative aimed at constructing a railway link between Angola and Zambia, fostering economic growth, regional integration, and improved logistics for trade. In 2022, the AFC was appointed lead developer of the project with support from multiple international stakeholders, including the US and EU governments and the African Development Bank. The project’s corridor is significant as it connects critical mining regions and agricultural clusters, providing vital export routes for minerals and facilitating overall trade across Africa. The involvement of the USTDA also highlights a focus on environmental sustainability in the development process, assuring that the project aligns with international standards.
The AFC’s signing of concession agreements with Angola and Zambia signifies a pivotal advancement in the development of the Zambia Lobito rail project, which is projected to bolster trade and stimulate economic growth. This initiative, valued at approximately $3 billion, not only emphasizes regional collaboration for infrastructure development but also prioritizes sustainability through environmental assessments. The project is anticipated to generate substantial job opportunities while enhancing trade routes across Africa, underscoring its importance for both Angola and Zambia.
Original Source: www.engineeringnews.co.za
