Africa Finance Corporation has signed concession agreements with Angola and Zambia for the Zambia Lobito Rail Project, aiming to create a trade corridor from the Port of Lobito to the Port of Dar es Salaam. This initiative includes a significant grant from the USTDA and is projected to generate $3 billion in economic benefits, reduce carbon emissions, and create over 1,250 jobs.
Africa Finance Corporation (AFC) has entered into significant concession agreements with the governments of Angola and Zambia to advance the Zambia Lobito Rail Project. This initiative aims to develop a strategic trade corridor extending from the Port of Lobito on the Atlantic coast to the Port of Dar es Salaam in Tanzania on the Indian Ocean coast. The signed agreements, which took place during a ceremonial event hosted by U.S. Secretary of State Antony J. Blinken amid the 79th session of the United Nations General Assembly, enable AFC to take the lead in financing, constructing, owning, and operating the railway. The Zambia Lobito project, designated as a greenfield rail line approximately 800 kilometers in length, will link the Benguela Railway in Luacano, Angola, with the existing Zambia Railways Line in Chingola, Zambia. The construction of this corridor is projected to enhance the efficient transport of goods and stimulate investments across sectors such as agriculture, health, digital infrastructure, mining, and electric access. In conjunction with the concession agreements, AFC secured a grant of $2 million from the United States Trade and Development Agency (USTDA) to support the completion of environmental and social studies necessary for the project. This grant is significant for AFC, as it marks their inaugural utilization of USTDA funding, facilitating a thorough Environmental and Social Impact Assessment (ESIA) to ensure alignment with global best practices. AFC will play a crucial role as the lead developer in this rail project, which is anticipated to generate an estimated economic benefit of $3 billion for Angola and Zambia, while also reducing carbon emissions by approximately 300,000 tons annually and creating over 1,250 job opportunities in construction and rail operations. Angola’s Minister of Transport, Ricardo Viegas d’Abreu, expressed confidence in the partnership, asserting, “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.” Meanwhile, Zambia’s Minister of Transport, Frank Tayali MP, emphasized the project’s significance in modernizing infrastructure and improving the livelihoods of citizens. AFC President & CEO, Samaila Zubairu, remarked that this project not only represents a transformative development for the region but also unlocks potential for trade and socio-economic growth. By establishing this strategic corridor, the Zambia Lobito Rail Project promises to further integrate Zambia and the Democratic Republic of Congo into global markets, enhancing trade opportunities and regional resilience.
The Zambia Lobito Rail Project is a critical infrastructure development initiative aimed at improving trade connectivity across Africa. With increasing demand for efficient transport systems to facilitate the movement of goods, this project emerges as a significant contributor to regional economic growth. The collaboration between AFC, Angola, and Zambia—along with support from international partners—highlights a strategic effort to establish an effective export route that will benefit various industries, especially mining in Zambia and the Democratic Republic of Congo (DRC).
The recent concession agreements signed between AFC, Angola, and Zambia mark a groundbreaking step towards the realization of the Zambia Lobito Rail Project. This initiative not only aims to enhance regional connectivity and trade efficiency but also stands to offer substantial economic benefits and job creation for both nations. By prioritizing environmental standards and social assessments, AFC demonstrates a commitment to sustainable development in its endeavors to advance Africa’s railway infrastructure.
Original Source: www.logupdateafrica.com
