The Africa Finance Corporation (AFC) has signed concession agreements with Angola and Zambia to advance the Zambia Lobito rail project, aimed at constructing an 800 km railway linking Angola to Zambia. The project, which expects to enhance regional trade and create economic benefits of $3 billion, received concurrent grant funding from the US Trade and Development Agency for necessary environmental and social studies. AFC’s leadership in this initiative signifies a transformative step towards improving infrastructure and economic development in the region.
The Africa Finance Corporation (AFC) has entered into concession agreements with the governments of Angola and Zambia aimed at advancing the Zambia Lobito rail project. Signed on September 24 during a ceremony attended by US Secretary of State Antony J. Blinken amid the seventy-ninth UN General Assembly, these agreements establish AFC as the lead player in the financing, construction, ownership, and operation of the railway project. Angola’s Transport Minister, Ricardo Viegas d’Abreu, expressed optimism about the project, noting its potential to enhance Angola’s position as a regional logistics hub and foster trade. The Zambia Lobito rail project, appointed to AFC in collaboration with the US government, European Union, African Development Bank, and the concerned nations, entails the construction of approximately 800 kilometers of rail line connecting Luacano in Angola to Chingola in Zambia. Expected to bolster trade, the rail corridor will facilitate movement for goods and attract investments across various sectors, including agriculture and mining. Zambia’s Transport Minister, Frank Tayali, hailed the project as pivotal for infrastructure modernization and economic enhancement. In conjunction with the concession agreements, AFC secured a $2 million grant from the US Trade and Development Agency for environmental and social studies related to the project. This funding marks AFC’s initial engagement with USTDA, enabling adherence to international environmental practices. The Zambia Lobito rail project aims to create a strategic trade route from Lobito on the Atlantic coast to Dar es Salaam on the Indian Ocean, promising economic benefits estimated at $3 billion, alongside offering over 1,250 jobs during construction and operations. The AFC President and CEO, Samaila Zubairu, highlighted that this project serves as a game-changer, unlocking significant trade and industrial growth in the region. The corridor will be vital for exporting copper and other minerals, facilitating optimal links for the mining sectors in Zambia and the Democratic Republic of Congo.
The Zambia Lobito rail project is a strategic infrastructure initiative aimed at enhancing regional trade connectivity. By establishing a rail link between Angola and Zambia, it seeks to improve the movement of goods and stimulate economic activities across various sectors. The project, which aligns with broader regional integration efforts, represents a significant investment in sub-Saharan Africa’s infrastructure to support industrialization and trade. The partnerships formed among multiple stakeholders, including international development agencies, underscore the collaborative approach to advancing infrastructural development in Africa. Additionally, the project is anticipated to have substantial socio-economic impacts by creating jobs and boosting exports.
In summary, the signing of concession agreements between AFC and the governments of Angola and Zambia marks a significant milestone for the Zambia Lobito rail project. With a focus on fostering trade and economic growth, this initiative is set to improve the infrastructural landscape of the region while promoting job creation and sustainable practices. The involvement of key international partners, alongside AFC’s commitment to lead the project, signifies a robust framework for success in enhancing regional logistics and connectivity.
Original Source: www.engineeringnews.co.za
