Africa Finance Corporation (AFC) has signed concession agreements with Angola and Zambia to lead the financing and construction of the Zambia Lobito Rail Project. This project will construct an 800 km rail line to enhance trade and investment between the two nations while securing a $2 million grant for environmental studies. The railway is expected to generate considerable economic benefits and facilitate crucial transport links within Africa.
The Africa Finance Corporation (AFC) has marked a significant step forward for the Zambia Lobito Rail Project by signing concession agreements with the governments of Angola and Zambia. This historic signing took place on September 23, during a ceremonial event facilitated by U.S. Secretary of State Antony J. Blinken and the G-7 Partnership for Global Infrastructure and Investment, coinciding with the 79th session of the United Nations General Assembly. The signed agreements empower the AFC to lead the financial, construction, ownership, and operational aspects of this transformative railway initiative. The Zambia Lobito Rail Project was initiated last year when AFC was appointed as the lead developer in collaboration with a coalition that includes the United States Government, the European Union, the African Development Bank, and the involved countries. This ambitious project aims to construct an approximately 800-kilometer greenfield rail line linking Angola’s Benguela rail line in Luacano to Zambia Railways’ existing line in Chingola. The completion of this trade corridor is expected to enhance the movement of goods and stimulate investments in various sectors such as agriculture, healthcare, digital infrastructure, mining, and energy accessibility within the region. As part of the recent agreements, AFC also secured a grant of $2 million from the United States Trade and Development Agency (USTDA) to fund environmental and social evaluations necessary for the project. This funding marks the AFC’s first engagement with USTDA resources and is intended to ensure that the Zambia Lobito Rail Project aligns with the highest international environmental standards by conducting thorough Environmental and Social Impact Assessments (ESIA). AFC’s role as the lead developer entails overseeing the creation of a critical transportation route that will not only facilitate the export of minerals and metals but also connect ports along opposite shores of Africa, from the Atlantic Ocean at Lobito to Dar es Salaam on the Indian Ocean. The anticipated economic impact includes an estimated $3 billion boost to both nations, a reduction of approximately 300,000 tons in emissions annually, and the generation of over 1,250 jobs in construction and operations. Angola’s Minister of Transport, Mr. Ricardo Viegas d’Abreu, expressed his enthusiasm for partnering with AFC, stating that the project would enhance Angola’s position as a central logistics hub, boosting trade with both Zambia and global markets. Similarly, Zambia’s Minister of Transport, Mr. Frank Tayali, emphasized the project’s importance in modernizing infrastructure and improving national competitiveness and livelihoods. Samaila Zubairu, President and CEO of AFC, underscored the project as a potential catalyst for trade, industrial growth, and socio-economic development across the region. This corridor provides a strategically important alternative route, offering the shortest pathway for exports and imports that connects vital mining areas and agricultural hubs in Zambia and the Democratic Republic of the Congo to the Port of Lobito. This development is set to significantly streamline cargo movement from the Copperbelt and Northwestern Provinces through Angola to Western markets.
The Zambia Lobito Rail Project has been initiated as a transformative infrastructure initiative, aimed at enhancing trade and economic connectivity between Angola and Zambia. The cooperation encompasses multiple stakeholders, including the U.S. Government and several international financial institutions, demonstrating a robust international interest in the development of African infrastructure. This railway is designed to bridge bottlenecks in transportation and create a vital trade corridor that can facilitate not only local commerce but also global trade routes, thus reflecting broader goals of regional economic integration and sustainable development.
In conclusion, the Zambia Lobito Rail Project represents a pivotal advancement in regional infrastructure that is positioned to stimulate economic growth, improve trade efficiency, and promote sustainable practices. With key partnerships solidified and financial backing secured, the AFC is set to lead a project that will benefit both Angola and Zambia significantly. The anticipated outcomes include enhanced export routes, reduction in transportation emissions, economic upliftment, and job creation, all contributing to a more interconnected African economy.
Original Source: www.railwaysafrica.com
