The Africa Finance Corporation has secured agreements with the Angolan and Zambian governments to develop the Zambia Lobito Rail Project, a strategic corridor to facilitate trade between Zambia, DRC, and international markets. This project promises significant economic benefits and improved logistics while adhering to environmental standards, in partnership with multiple international stakeholders.
The Africa Finance Corporation (AFC) has formalized concession agreements with the governments of Angola and Zambia to advance the financing, construction, ownership, and operation of the Zambia Lobito Rail Project. This strategic corridor aims to create an alternative route for Zambian and Democratic Republic of Congo (DRC) exports, connecting key mining areas, agricultural zones, and businesses to the Lobito Port. The initiative will streamline the transport of goods from Zambia’s Copperbelt and Northwestern Provinces through Angola to international markets. The ceremonial signing of these agreements occurred on September 24, 2023, and was presided over by U.S. Secretary of State Antony J. Blinken, in collaboration with the G-7 Partnership for Global Infrastructure and Investment (PGI) during the 79th session of the United Nations General Assembly. This development marks a significant milestone for AFC, strengthening their role as the lead developer alongside the U.S. Government, the European Union, the African Development Bank, and the involved governments. The project encompasses the construction of approximately 800 kilometers of greenfield railway line to connect Angola’s Benguela rail line in Luacano to the existing Zambia Railways Line in Chingola. Upon completion, the rail corridor will promote efficient goods movement and stimulate investment in agriculture, health care, digital infrastructure, mining, and access to electricity. Additionally, AFC secured a $2 million grant from the United States Trade and Development Agency (USTDA) to complete environmental and social studies essential for the project’s sustainability. This grant represents a novel collaboration between AFC and USTDA, enabling comprehensive Environmental and Social Impact Assessments (ESIA) to align the project with global best practices. “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,” stated AFC. The socio-economic implications of the Lobito corridor project are substantial, with projected economic benefits estimated at approximately $3 billion for Angola and Zambia. Furthermore, it is anticipated to reduce emissions by approximately 300,000 tons annually and create over 1,250 jobs in construction and operations. Transport Minister of Angola, Ricardo Viegas d’Abreu commented on the project, affirming, “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, Zambian Transport Minister Frank Tayali expressed that the project is a pivotal step “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.” AFC President & CEO Samaila Zubairu noted, “The 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.”
The Zambia Lobito Rail Project is designed to enhance trade routes between Zambia and Angola, addressing logistical challenges for mineral and agricultural exports. By linking key economic zones to the Lobito Port, this initiative seeks to bolster regional integration and economic development. The involvement of multiple stakeholders such as U.S. and European governments, alongside African institutions, underscores the project’s significance in enhancing infrastructure across Africa.
The agreements signed between the Africa Finance Corporation and the governments of Angola and Zambia signal a transformative step toward establishing the Zambia Lobito Rail Project. This corridor is expected to foster economic growth, enhance trade efficiency, and create jobs while implementing sustainable practices. The comprehensive engagement of international partners in the funding and management of the project reflects a commitment to developing vital infrastructure that benefits the region.
Original Source: www.esi-africa.com
