AFC Signs Concession Agreements with Angola, Zambia to Advance Lobito Rail Project

The Africa Finance Corporation (AFC) has formalized concession agreements with Angola and Zambia to progress the Zambia Lobito rail project, aimed at establishing a new 800-kilometer railway link to foster trade and economic integration between the two countries. The project, expected to generate $3 billion in economic benefits and create over 1,250 jobs, received significant support from the U.S. government through a $2 million grant for environmental and social studies. The initiative represents a pivotal move in enhancing regional logistics and promoting trade across Africa.

The Africa Finance Corporation (AFC) has entered into concession agreements with the governments of Angola and Zambia to advance the Zambia Lobito rail project. This initiative aims to facilitate the financing, construction, ownership, and operation of the railway, which is intended to create an efficient trade corridor enhancing regional logistics and trade networks. The agreements were officially signed on September 24, with the event hosted by U.S. Secretary of State Antony J. Blinken, amid discussions with global leaders during the seventy-ninth session of the UN General Assembly. Transport Minister Ricardo Viegas d’Abreu of Angola expressed his optimism regarding the partnership, noting its potential to bolster trade relations not only with Zambia but also internationally. The project involves constructing approximately 800 kilometers of new rail line connecting the Benguela rail line in Luacano, Angola, to Zambia Railways in Chingola, Zambia. It is anticipated that this corridor will support exports and facilitate the movement of goods, along with investments across several sectors, including agriculture, health, digital infrastructure, and mining. Hailing its transformative potential, Zambia’s Transport Minister Frank Tayali stated that the project is pivotal for the nation’s infrastructure modernization and economic competitiveness. Concurrently, AFC secured a $2 million grant from the U.S. Trade and Development Agency to fund environmental and social studies, ensuring adherence to impactful assessments that meet international standards. Leading the project, AFC aims to create an effective transport pathway for regional minerals and metals, thus enhancing trade between various African nations and facilitating access from the Port of Lobito in the Atlantic Ocean to the Port of Dar es Salaam in Tanzania on the Indian Ocean, thereby promoting global trade. The estimated economic benefits of the project are projected to be around $3 billion, as well as the generation of over 1,250 jobs and a significant reduction in carbon emissions. AFC President and CEO Samaila Zubairu emphasized the rail project as a crucial step towards fostering industrial development, regional integration, and a strategic export route for critical minerals during the global energy transition.

The construction of the Zambia Lobito rail project follows a regional collaborative effort involving multiple stakeholders, including AFC, the U.S. government, and international institutions like the African Development Bank. The project focuses on establishing a vital transport link that can streamline export logistics, particularly for Zambia and the Democratic Republic of Congo, connecting them to global markets through efficient railway infrastructure. As the lead developer, AFC seeks to ensure that the project not only meets economic goals but also adheres to environmental standards and social accountability.

In conclusion, the Zambia Lobito rail project represents a significant advancement in regional trade and infrastructure modernization, with the potential for substantial economic growth and environmental benefits. The collaborative agreements signed by AFC, Angola, and Zambia mark a transformative step towards enhancing logistical capabilities and promoting trade within Africa and beyond. The project is expected to create jobs, reduce emissions, and improve overall infrastructure connectivity, serving as a model for future infrastructural developments across the continent.

Original Source: www.engineeringnews.co.za

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