The Africa Finance Corporation (AFC) has entered into concession agreements with the governments of Angola and Zambia to lead the Zambia Lobito Rail Project. This initiative, which includes a $2 million grant from USTDA for environmental studies, aims to construct an 800km railway to enhance trade, economic growth, and job creation across the region, with anticipated benefits of $3 billion and significant reductions in emissions.
In a pivotal development for the Zambia Lobito Rail Project, the Africa Finance Corporation (AFC) has officially signed concession agreements with the governments of Angola and Zambia. This event occurred on September 23rd during a ceremonial signing attended by U.S. Secretary of State Antony J. Blinken and representatives of the Biden Administration’s G-7 Partnership for Global Infrastructure and Investment (PGI), held alongside the 79th session of the United Nations General Assembly (UNGA 79). These agreements authorize AFC to lead the efforts in financing, constructing, owning, and operating a new railway line that is poised to transform trade in the region. Last year, AFC was designated as the lead developer for the project, a collaboration that includes partnerships with the United States Government, the European Union, the African Development Bank, as well as the respective nations involved, including Angola, the Democratic Republic of Congo, and Zambia. The ambitious project entails the creation of approximately 800 kilometers of a new rail line to connect the Benguela rail line in Luacano, Angola, with Zambia Railways Line in Chingola, Zambia. Upon its completion, this corridor is expected to enhance the efficiency of transporting goods, thereby stimulating investment in sectors such as agriculture, health, digital technology, mining, and electricity. In conjunction with the signing of the concession agreements, AFC secured a grant of $2 million from the United States Trade and Development Agency (USTDA) aimed at advancing environmental and social assessments for the project. This grant is notable as it marks AFC’s initial engagement with USTDA funding, enabling rigorous Environmental and Social Impact Assessments (ESIA) to confirm that the Zambia Lobito Rail Project meets global environmental standards and best practices. As the lead developer, AFC is positioned to implement a rail system that will not only facilitate the transfer of minerals and metals from the region but will also establish a significant trade corridor across the African continent, stretching from the Port of Lobito on the Atlantic coast to the Port of Dar es Salam in Tanzania on the Indian coast. The development of this railway is projected to generate economic benefits of around $3 billion across Zambia and Angola, while also leading to a reduction in emissions by approximately 300,000 tons annually and creating over 1,250 jobs in both construction and operational phases. Mr. Ricardo Viegas d’Abreu, the Honourable Minister of Transport for Angola, expressed optimism regarding the collaboration with AFC, stating that, “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.” Similarly, Mr. Frank Tayali, MP and Honourable Minister of Transport for Zambia, emphasized the project’s importance, noting, “The Zambia Lobito Rail Project is an important milestone in our efforts to modernise infrastructure, enhance the competitiveness of our economy and improve the livelihoods of our people. We look forward to partnering with Africa Finance Corporation to deliver on this groundbreaking project.” AFC President & CEO, Samaila Zubairu, remarked on the project’s significance, stating, “The Zambia Lobito Rail Project represents a game-changing development for the region, unlocking tremendous potential for trade, industrialisation, and socio-economic growth. AFC is proud to partner with the governments of Angola and Zambia to deliver world class rail infrastructure, which will accelerate industrial development in Africa, promote regional integration and provide a vital export route for copper and other critical minerals for the global energy transition.” This corridor will serve as a strategic alternative for Zambia and the Democratic Republic of Congo, providing the shortest route for exports and imports. It will connect essential mining regions and agricultural clusters, facilitating cargo movement from the Copperbelt and Northwestern Provinces through Angola to Western markets.
The Zambia Lobito Rail Project is a critical infrastructure undertaking aimed at improving trade connectivity between Zambia and Angola. It highlights the collaborative efforts among multiple stakeholders, including national governments and international organizations, to bolster regional trade and investment. This rail line is expected to address existing logistical challenges, thereby enhancing economic opportunities throughout the connected regions. The project underscores the increasing importance of sustainable and efficient infrastructure in driving Africa’s economic growth and integration.
The signing of concession agreements by the Africa Finance Corporation with Angola and Zambia marks a significant step forward in the development of the Zambia Lobito Rail Project. Expected to create considerable economic benefits and facilitate trade, this railway is set to enhance the connectivity between crucial mining areas and international markets. The collaboration among various stakeholders, including USTDA, highlights the commitment to environmentally responsible infrastructure development, paving the way for regional economic growth and sustainability.
Original Source: www.railwaysafrica.com
