The Africa Finance Corporation has signed concession agreements with Angola and Zambia to develop the Zambia Lobito rail project, connecting the Benguela rail line in Angola to Zambia Railways. This railway aims to enhance trade and infrastructure, generating $3 billion in economic benefits and creating over 1,250 jobs while ensuring adherence to environmental standards through USTDA funding.
The Africa Finance Corporation (AFC) has formalized concession agreements with the governments of Angola and Zambia to advance the Lobito rail project. This initiative is designed to finance, construct, own, and operate a railway that will connect Angola to Zambia. The agreements were signed on September 24, 2023, during a ceremonial event attended by U.S. Secretary of State Antony J. Blinken and representatives from the Biden Administration’s G7 Partnership for Global Infrastructure and Investment, which took place alongside the seventy-ninth session of the United Nations General Assembly. Angola’s Transport Minister, Ricardo Viegas d’Abreu, expressed satisfaction with this collaboration, stating that it “will deepen our nation’s role as a regional logistics hub, boosting trade not only with Zambia but with the rest of the world.” The Lobito rail project involves the construction of approximately 800 kilometers of greenfield rail line that will link the Benguela rail line in Luacano, Angola, to Zambia Railways in Chingola, Zambia. Once operational, this trade corridor is projected to facilitate the movement of goods and stimulate investments across various sectors including agriculture, health, digital infrastructure, mining, and electricity access. Zambia’s Transport Minister, Frank Tayali, emphasized the project’s significance, stating that it is an “important milestone in our efforts to modernise infrastructure, enhance the competitiveness of our economy and improve the livelihoods of our people.” In conjunction with the concession agreements, AFC secured a $2 million grant from the U.S. Trade and Development Agency (USTDA) for environmental and social studies pertinent to the project. This funding allows AFC to ensure that the Lobito rail project adheres to international best practices and environmental standards. As the lead developer, AFC aims to establish a crucial evacuation route for minerals and metals from the region, creating a trade corridor from the Port of Lobito on the Atlantic coast to the Port of Dar es Salaam on the Indian Ocean. The initiative is expected to generate approximately $3 billion in economic benefits for Angola and Zambia, reduce carbon emissions by roughly 300,000 tons annually, and create over 1,250 jobs in construction and operations. Samaila Zubairu, AFC’s president and CEO, remarked that the project will “unlock tremendous potential for trade, industrialization and socioeconomic growth” in the region, promoting African regional integration and providing a vital export route for minerals critical for the global energy transition. Moreover, it is set to offer an alternative strategic route for Zambia and the Democratic Republic of Congo (DRC) to reach international markets, linking essential mining regions and enhancing agricultural trade with global partners.
The Lobito rail project is a significant infrastructure initiative intended to connect Angola and Zambia, enhancing trade and economic development between the two nations. By constructing a railway that spans approximately 800 kilometers, this project aims to establish a direct trade corridor that connects key mining and agricultural areas in Zambia to the Port of Lobito in Angola. This connection is expected to modernize crucial infrastructure, stimulate economic growth, and promote regional integration in Africa. The involvement of multiple international partners, including the U.S. Trade and Development Agency, underscores the project’s importance and the collaborative effort required for its success.
The signing of the concession agreements marks a pivotal development in the Lobito rail project, with significant implications for trade, infrastructure, and economic growth in Angola and Zambia. By enabling efficient transportation of goods, fostering investments across various sectors, and creating thousands of jobs, the project is set to transform regional commerce and contribute to sustainable development in Africa. The project’s commitment to environmental standards will further ensure that its long-term impact aligns with global best practices.
Original Source: www.engineeringnews.co.za
