The Africa Finance Corporation (AFC) has secured concession agreements with Angola and Zambia to develop the Zambia Lobito Rail Project. This initiative aims to connect Zambia and the DRC to the Port of Lobito, facilitating trade and cargo movement. The project, spanning approximately 800 kilometers, promises to enhance economic benefits, create jobs, and reduce emissions. The collaboration also includes grant funding for environmental studies, reinforcing AFC’s commitment to international standards in project execution.
The Africa Finance Corporation (AFC) has formalized concession agreements with the governments of Angola and Zambia, marking a significant step towards financing, constructing, and managing the Zambia Lobito Rail Project. This strategic corridor is expected to serve as a vital route for international exports from Zambia and the Democratic Republic of Congo (DRC), linking essential mining zones, agricultural sectors, and businesses directly to the Port of Lobito. The project promises to optimize cargo movement from Zambia’s Copperbelt and Northwestern Provinces through Angola to Western markets, thereby enhancing trade efficiency. The agreements were signed during a ceremonial event held on September 24, under the auspices of United States Secretary of State Antony J. Blinken and the Biden Administration’s G-7 Partnership for Global Infrastructure and Investment (PGI) amid the ongoing 79th United Nations General Assembly (UNGA 79). This agreement lays the foundation for the AFC to lead the development of this critical railway infrastructure, with its appointment as the principal developer confirmed last year in concert with key partners including the US government, the European Union, and the African Development Bank. The Zambia Lobito rail project entails constructing an 800-kilometer greenfield rail line which will connect with the existing Zambia Railways system in Chingola from the Benguela rail in Luacano, Angola. Upon completion, this trade corridor will not only streamline goods movement but also foster investments across various sectors such as agriculture, health, digital infrastructure, mining, and electricity access. In addition to the concession agreements, AFC secured $2 million in grant funding from the United States Trade and Development Agency (USTDA) to support the completion of environmental and social studies for the rail project. This financial endorsement marks a first for AFC in utilizing USTDA funding, ensuring that their Environmental and Social Impact Assessments (ESIA) comet with top-tier environmental standards. The AFC articulated its ambitious vision for this project, saying, “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 Lobito corridor is projected to yield approximately $3 billion in economic benefits for both Angola and Zambia, reduce annual emissions by around 300,000 tons, and generate more than 1,250 jobs during construction and operational phases. Angolan Minister of Transport Ricardo Viegas d’Abreu expressed optimism about this collaboration, stating, “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.” Zambian Minister of Transport Frank Tayali reflected on the initiative’s significance, noting that it is a critical milestone in the modernization of infrastructure and enhancement of economic competitiveness. He asserted, “We look forward to partnering with Africa Finance Corporation to deliver on this groundbreaking project.” Samaila Zubairu, AFC President & CEO, emphasized that the project represents a transformative development for the region, unlocking significant potential for trade and industrial growth, thereby facilitating regional integration and providing essential export avenues for critical minerals used in global energy transitions. Overall, the collaboration between AFC, Angola, and Zambia on the Lobito corridor reflects a substantial commitment towards building robust infrastructure that not only advances local economies but also contributes to sustainable development in Africa.
The Zambia Lobito Rail Project is strategically significant as it aims to enhance trade routes between Zambia, the DRC, and global markets by constructing a new railway connection. Given the importance of efficient transport for economic growth, the establishment of this corridor seeks to facilitate logistics for mining and agricultural exports, thereby boosting economic activities and attracting investments. The partnership with AFC and support from international entities reinforces the commitment to modernize infrastructure in the region, ensuring adherence to environmental standards.
In conclusion, the signing of the concession agreements for the Zambia Lobito Rail Project heralds a new chapter in the enhancement of trade and transportation in Southern Africa. It is expected to unlock vast economic opportunities, create jobs, and facilitate regional integration. The project’s successful execution is set to strengthen Zambia’s and Angola’s positions in international trade while promoting sustainable practices through adherence to environmental assessments.
Original Source: www.esi-africa.com
