The Africa Finance Corporation (AFC) has signed concession agreements with the governments of Angola and Zambia to advance the Zambia Lobito Rail Project, aimed at creating an efficient trade corridor from the Atlantic to the Indian Ocean. The project, spanning approximately 800 kilometers, will facilitate mineral transport and enhance trade across Africa, while also generating a projected economic impact of $3 billion and reducing emissions by around 300,000 tons annually. AFC has also received a $2 million grant from USTDA for environmental studies, emphasizing the project’s commitment to sustainability.
The Africa Finance Corporation (AFC) has formalized concession agreements with the governments of Angola and Zambia to propel the Zambia Lobito Rail Project. This initiative aims to develop an efficient rail route specifically designed to facilitate the transport of minerals and metals across the region and to establish a vital trade corridor that stretches from the Port of Lobito on the Atlantic Ocean to the Port of Dar es Salaam on the Indian Ocean. During a ceremonial signing event attended by U.S. Secretary of State Antony J. Blinken and representatives from the Biden Administration’s G-7 Partnership for Global Infrastructure and Investment (PGI) at the sidelines of the 79th session of the United Nations General Assembly, AFC secured agreements that authorize the Corporation to lead the financing, construction, ownership, and operational aspects of this substantial railway project. As previously appointed lead developer for the Zambia Lobito rail initiative, AFC is collaborating with several international entities including the United States Government, the European Union, the African Development Bank, and the governments of Angola, the Democratic Republic of Congo, and Zambia. The project involves the establishment of an approximately 800-kilometer greenfield rail line that will link the Benguela Rail Line in Luacano, Angola, to the Zambia Railways Line in Chingola, Zambia. Completing this corridor anticipates contributing to the efficient movement of goods while catalyzing investments across various sectors such as agriculture, healthcare, digital infrastructure, and electricity access along its path. In conjunction with the signing of the concession agreements, AFC has also been awarded a grant of US$ 2 million from the United States Trade and Development Agency (USTDA) to facilitate the completion of essential environmental and social studies for the Zambia Lobito Rail Project. This funding marks the first instance in which AFC has engaged with USTDA resources, enabling comprehensive Environmental and Social Impact Assessments (ESIA) that adhere to international best practices and environmental standards. The rail corridor not only serves as a conduit for mineral transportation but is projected to generate an estimated economic impact of approximately $3 billion in both Angola and Zambia. With a targeted reduction of about 300,000 tons of emissions per year along with the creation of over 1,250 jobs throughout the phases of construction and operation, the project promises significant socio-economic benefits. Minister of Transport for Angola, Ricardo Viegas d’Abreu, expressed, “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.” Frank Tayali MP, Minister of Transport for Zambia, noted, “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 and CEO, Samaila Zubairu stated, “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.” Ultimately, the Zambia Lobito Rail Corridor will offer a strategically efficient link for Zambia and the Democratic Republic of Congo to international export markets, effectively connecting key mining regions, agricultural sectors, and businesses to the Port of Lobito, thereby facilitating cargo movement from the Copperbelt and Northwestern Provinces to broader Western markets.
The Zambia Lobito Rail Project represents a significant infrastructure endeavor aimed at enhancing transportation and trade linkages within Africa. The project emerges against a backdrop of increasing demand for efficient transport routes to facilitate the export of natural resources, particularly minerals and metals. The partnership between AFC, Angola, and Zambia highlights the critical role of strategic collaborations in executing large-scale infrastructure projects, particularly those that can contribute to the regional economy and alleviate logistical challenges that hinder trade. The involvement of international partners, including the U.S. government and USTDA, underscores the project’s relevance within global economic frameworks and its potential impacts on regional development.
In summary, the Zambia Lobito Rail Project marks a pivotal advancement for trade and infrastructure development in Africa, spearheaded by the Africa Finance Corporation in partnership with Angola and Zambia. This initiative not only aims to create a vital transport corridor that will enable efficient trade across the continent but also promises substantial economic benefits, job creation, and a commitment to environmental sustainability through rigorous assessment processes. The collaboration of international entities further enhances the project’s potential to become a transformative force in the regional economy.
Original Source: www.logupdateafrica.com
