The Africa Finance Corporation has signed concession agreements with Angola and Zambia to develop the Zambia Lobito Rail Project, enhancing trade and transport across Southern Africa. The 800km railway will connect key regions, facilitate mineral exports, create jobs, and promote economic growth, with funding support for environmental studies from the USTDA.
The Africa Finance Corporation (AFC) has recently formalized agreements with the governments of Angola and Zambia aimed at advancing the Zambia Lobito Rail Project. This significant initiative is poised to serve as an efficient transport route for minerals and metals, while establishing a vital trade corridor that connects the Atlantic Port of Lobito to the Indian Ocean Port of Dar es Salaam, Tanzania. The project entails constructing an approximately 800-kilometer greenfield railway line that links the existing Zambia Railways Line in Chingola, Zambia, to the Benguela rail line in Luacano, Angola. The agreements were ceremoniously signed on the sidelines of the 79th session of the United Nations General Assembly, under the auspices of U.S. Secretary of State Antony J. Blinken and the G-7 Partnership for Global Infrastructure and Investment. This partnership empowers AFC to lead the project’s development alongside international stakeholders including the U.S. government, the European Union, the African Development Bank, and the governments of Angola, the Democratic Republic of Congo, and Zambia. Additionally, AFC secured a $2 million grant from the United States Trade and Development Agency (USTDA) to support the comprehensive environmental and social studies necessary for the project. This funding will facilitate an extensive Environmental and Social Impact Assessment (ESIA) to ensure adherence to international practices and standards. The Zambia Lobito Rail Project is projected to generate an economic impact worth approximately $3 billion, create over 1,250 jobs in construction and operations, and contribute to a reduction of carbon emissions by around 300,000 tons annually. Transport Ministers from both Angola and Zambia expressed their enthusiasm about the project, highlighting its potential to strengthen regional logistics, boost trade, and modernize infrastructure, thereby enhancing their nations’ economic competitiveness. Samaila Zubairu, President & CEO of AFC, remarked on the transformative nature of the project, emphasizing its pivotal role in facilitating trade, fostering industrialization, and promoting socio-economic advancement in the region. The rail corridor is expected to provide Zambia and the Democratic Republic of Congo with a strategic export route to various international markets, linking critical agricultural and mining sectors to the Port of Lobito, thus significantly enhancing cargo movement from the Copperbelt and Northwestern Provinces to Western markets.
The Zambia Lobito Rail Project is a strategic initiative aimed at improving trade infrastructure across Southern Africa. By connecting landlocked regions with vital ports, this project not only aids in the efficient transportation of minerals and agricultural products but also supports regional economic development and integration. The involvement of the AFC, U.S. government, and other international partners underscores the global interest and investment in enhancing African trade routes. The project aligns with broader developmental goals relating to job creation, environmental sustainability, and the facilitation of international trade.
In summary, the Zambia Lobito Rail Project represents a critical development for enhancing regional trade and economic growth in Southern Africa. Through the collaborative efforts of AFC and the governments of Angola and Zambia, this initiative is set not only to improve logistics and transport efficiency but also to stimulate substantial economic activity in the region. Additionally, the project’s commitment to environmental standards through USTDA funding highlights a conscientious approach to sustainable development.
Original Source: www.logupdateafrica.com
