By entering into concession agreements with the governments of Angola and Zambia, the Africa Finance Corporation (AFC) has advanced the Zambia Lobito Rail project significantly. On the fringes of the 79th session of the United Nations General Assembly (UNGA 79), the Biden Administration’s G-7 Partnership for Global Infrastructure and Investment (PGI) and U.S. Secretary of State Antony J. Blinken held this ceremonial signing. The accords enable the AFC to assume the primary role in funding, building, owning, and running the Lobito Rail project, an important infrastructure undertaking intended to improve commercial connectivity between the two countries.
In collaboration with the governments of Angola, the Democratic Republic of the Congo, Zambia, the U.S. Government, the European Union, and the African Development Bank, the AFC was named the principal developer of the Zambia Lobito rail project last year. This partnership demonstrates the global dedication to using better infrastructure to promote regional integration and economic progress. As part of the project, a Greenfield rail line of around 800 kilometers will be built to connect the Zambia Railways Line in Chingola, Zambia, to the Benguela rail line in Luacano, Angola. This commerce corridor would greatly improve the effective flow of commodities once it is finished and encourage investments in a number of industries, such as mining, digital infrastructure, agriculture, health, and electricity access.
The United States Trade and Development Agency (USTDA) awarded the AFC a $2 million grant in tandem with the signing of the concession deals. This grant, which is the first time the AFC has used USTDA financing, will help complete critical environmental and socioeconomic studies for the project. In order to guarantee that the Zambia Lobito Rail Project complies with global best practices and environmental standards, the funding will enable thorough Environmental and Social Impact Assessments (ESIA).
The AFC’s leadership role in this project is pivotal, as the railway will serve as an efficient evacuation route for minerals and metals from the region. Additionally, it will help establish a crucial trade corridor across Africa, linking the Port of Lobito on the Atlantic Ocean to the Port of Dar es Salaam on the Indian Ocean. This corridor aims to enhance global and intra-African trade by providing an alternative strategic route for Zambia and the Democratic Republic of Congo (DRC) to international export markets.
According to economic estimates, the railway would benefit Angola and Zambia significantly, by almost $3 billion. It is anticipated that the project will create more than 1,250 employment during the development and operating phases and cut carbon emissions by about 300,000 tons annually. These numbers highlight the project’s potential for employment generation, environmental sustainability, and economic growth.
Both Angola’s Minister of Transport, Ricardo Viegas d’Abreu, and Zambia’s Minister of Transport, Frank Tayali, expressed their enthusiasm for the project. Minister d’Abreu emphasized the transformative nature of the partnership with the AFC, noting its potential to deepen Angola’s role as a regional logistics hub. Minister Tayali highlighted the project’s importance as a milestone in modernizing infrastructure and enhancing the competitiveness of Zambia’s economy.
Samaila Zubairu, President & CEO of the AFC, described the Zambia Lobito Rail Project as a game-changing development for the region, unlocking tremendous potential for trade, industrialization, and socio-economic growth. He reiterated the AFC’s commitment to delivering world-class rail infrastructure that promotes regional integration and provides vital export routes for copper and other critical minerals, essential for the global energy transition.
The Zambia Lobito Rail project represents a significant advancement in enhancing regional connectivity and fostering economic development. By linking key mining regions, agricultural clusters, and businesses in Zambia and the DRC to the Port of Lobito, the project is set to facilitate the efficient movement of cargo and create lasting benefits for both nations and their populations.
