The Africa Finance Corporation has signed agreements with Angola and Zambia to develop the Zambia Lobito Rail Project, enhancing trade connections between Zambia and the DRC through an efficient railway line. This initiative aims to generate approximately $3 billion in economic benefits and create over 1,250 jobs while supporting international export routes for mining and agriculture. It is backed by significant international funding and emphasizes sustainability through environmental assessments.
The Africa Finance Corporation (AFC) has formalized concession agreements with the governments of Angola and Zambia for the financing, construction, ownership, and operation of the Zambia Lobito Rail Project. This strategic corridor will establish an alternative route for international exports from Zambia and the Democratic Republic of the Congo (DRC), linking vital mining regions, agricultural clusters, and businesses to the Port of Lobito. The project promises to enhance cargo movement, particularly from the Copperbelt and Northwestern Provinces of Zambia to Western markets. The signing of these agreements took place on September 24, during a ceremonial event presided over by U.S. Secretary of State Antony J. Blinken, alongside representatives from the Biden Administration’s G-7 Partnership for Global Infrastructure and Investment (PGI) at the 79th session of the United Nations General Assembly (UNGA 79). This initiative positions AFC as the lead developer, backing it with support from the U.S. Government, the European Union, the African Development Bank, and the respective governments of Angola, DRC, and Zambia. The Lobito project encompasses the construction of an approximately 800-kilometer greenfield railway line that will connect the Benguela railway in Luacano, Angola, to the existing Zambia Railways line in Chingola, Zambia. Upon completion, the railway corridor is expected to facilitate efficient cargo transportation, stimulate investments across agriculture, health, digital infrastructure, mining, and enhance electricity access in the region. Additionally, AFC secured a $2 million grant from the United States Trade and Development Agency (USTDA) to support environmental and social assessments for the project. This pivotal grant will ensure compliance with international environmental standards through comprehensive Environmental and Social Impact Assessments (ESIA). The AFC has highlighted its significant role in spearheading the railway project as a key route for exporting minerals. This development is envisioned to create a robust trade corridor extending from the Port of Lobito on the Atlantic coast to the Port of Dar es Salaam in Tanzania, facilitating broader global trade as well as intra-African commerce. The Lobito corridor is projected to generate an approximate economic benefit of $3 billion between the two nations, contributing to a reduction in carbon emissions by about 300,000 tons annually and creating over 1,250 jobs throughout its construction and operation phases. Angola’s Minister of Transport, Ricardo Viegas d’Abreu, commented on the partnerships, stating their contentment in collaborating with AFC on this transformative initiative that strengthens Angola’s logistics capabilities. Zambia’s Minister of Transport, Frank Tayali, emphasized the importance of this project as a landmark in modernizing infrastructure and enhancing economic competitiveness. Samaila Zubairu, the President and CEO of AFC, affirmed the project’s potential to drive significant trade and socio-economic development in the region, promoting industrial growth and providing a crucial export route for essential minerals to support the global energy transition.
The Zambia Lobito Rail Project is a crucial infrastructure initiative aimed at enhancing trade connectivity between Zambia and Angola, primarily benefiting the copper and mining industries in the region. The project addresses the need for a more efficient transport system to facilitate the movement of goods from landlocked Zambia to international markets while supporting the economic development of both Angola and Zambia. The partnership aims to leverage international support and funding to ensure the sustainable and successful delivery of the railway line, highlighting Africa’s potential for growth through improved regional integration.
In conclusion, the AFC’s signing of concession agreements with Angola and Zambia for the Zambia Lobito Rail Project marks a significant step towards bolstering trade and transportation infrastructure in Southern Africa. This transformative initiative is poised to create substantial economic benefits, enhance regional connectivity, and pave the way for increased investments across multiple sectors while aligning with best international practices. The collaborative effort underscores the commitment of the involved governments and AFC to foster sustainable economic development in the region.
Original Source: www.esi-africa.com
