The Africa Finance Corporation has signed agreements with Angola and Zambia facilitating the Zambia Lobito Rail Project, which will connect key mining and agricultural regions to the Port of Lobito. This significant infrastructure endeavor is expected to integrate the trade corridor, enhance logistics, create jobs, and generate economic benefits, with an anticipated investment of $2 million in environmental assessments. The project aims to boost trade and regional cooperation between Zambia and Angola while advancing global energy transition objectives.
The Africa Finance Corporation (AFC) has finalized concession agreements with both the governments of Angola and Zambia concerning the Zambia Lobito Rail Project, which is pivotal for the financing, construction, ownership, and operation of this critical infrastructure initiative. This rail corridor will serve as an alternative and strategically important route to international export markets for both Zambia and the Democratic Republic of the Congo (DRC). The Zambia Lobito Rail Project promises to reduce transit times for exports and imports, directly linking essential mining regions, agricultural clusters, and commerce in Zambia and the DRC to the Port of Lobito. It is projected to enhance the efficient movement of cargo from Zambia’s Copperbelt and Northwestern Provinces, traversing Angola on its journey to Western markets. On September 24, during a ceremonial signing event attended by U.S. Secretary of State Antony J. Blinken and convened alongside the G-7 Partnership for Global Infrastructure and Investment (PGI) at the 79th session of the United Nations General Assembly (UNGA 79), these agreements were ratified. This development allows the AFC to take the lead in advancing the railway’s construction. Last year, the AFC was designated as the lead developer for the project, collaborating closely with the U.S. Government, the European Union, the African Development Bank, as well as the governments of Angola, the DRC, and Zambia. As part of the project, an approximately 800-kilometer greenfield rail line will connect the Benguela railway system in Luacano, Angola, to the existing Zambia Railways in Chingola, Zambia. Crucially, the trade corridor portends enhanced efficiency in goods transportation and is expected to stimulate investments across various sectors, including agriculture, health, digital infrastructure, mining, and electricity accessibility in the areas along the corridor. Concurrent with the concession agreement signing, the AFC also secured a grant of $2 million from the United States Trade and Development Agency (USTDA), which marks the first instance of tapping into USTDA funding to facilitate comprehensive Environmental and Social Impact Assessments (ESIA), assuring adherence to international standards and practices. The AFC articulated 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 Salam in Tanzania on the coast of the Indian Ocean, facilitating global and intra-African trade.” The socio-economic implications of the Lobito corridor are profound, with anticipated economic benefits projected at approximately $3 billion across both Angola and Zambia. Moreover, it is expected to decrease carbon emissions by around 300,000 tons annually while generating over 1,250 jobs within both construction and operational phases. Minister of Transport for Angola, Ricardo Viegas d’Abreu, stated, “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.” Furthermore, Frank Tayali, the Minister of Transport for Zambia, commented on the project, stating that it represents a significant milestone in efforts to modernize infrastructure and improve the competitiveness of the economy, as well as enhancing the livelihoods of citizens. AFC President & CEO, Samaila Zubairu, emphasized the project’s transformative potential, asserting that it will unlock tremendous prospects for trade and socio-economic growth. He affirmed, “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.”
The Zambia Lobito Rail Project represents a significant infrastructure advancement aimed at establishing a vital trade corridor in Southern Africa. Enabling efficient transport between landlocked Zambia, the DRC, and international markets via the Port of Lobito in Angola will substantially enhance trade routes crucial for mining and agricultural exports. This initiative not only reflects regional cooperation among various governments but also aligns with broader international development objectives supported by multi-lateral organizations and alliances.
In conclusion, the signing of the concession agreements by the Africa Finance Corporation with Angola and Zambia marks a pivotal step towards realizing the Zambia Lobito Rail Project, which is set to revolutionize trade logistics in the region. With substantial expected socio-economic benefits, including job creation and emissions reduction, this project promises to reconfigure the transport infrastructure landscape in Southern Africa while fostering stronger regional ties.
Original Source: www.esi-africa.com
