The Africa Finance Corporation has signed concession agreements with Angola and Zambia for the Zambia Lobito Rail Project, aimed at improving infrastructure and trade between the two nations. The project involves constructing an 800km railway line that connects the Benguela rail line in Angola to Zambia Railways. It is expected to generate $3 billion in economic benefits, create over 1,250 jobs, and reduce emissions significantly while enhancing trade links across Africa.
The Africa Finance Corporation (AFC) has officially entered into concession agreements with the governments of Angola and Zambia to advance the Zambia Lobito Rail Project, a crucial initiative aimed at significantly improving infrastructure and trade in the region. This notable agreement was formalized on the 23rd of September during a ceremonial signing event held under the auspices of U.S. Secretary of State Antony J. Blinken and the Biden Administration’s G-7 Partnership for Global Infrastructure and Investment (PGI), occurring on the sidelines of the 79th session of the United Nations General Assembly (UNGA 79). As the designated lead developer for the project, AFC is tasked with overseeing the financing, construction, ownership, and operation of the railway, which will span an estimated 800 kilometers, linking the Benguela rail line in Luacano, Angola, to Zambia Railways in Chingola, Zambia. This rail project is poised to enhance the movement of goods and stimulate investments across various sectors, including agriculture, health, digital infrastructure, mining, and electricity access. In conjunction with the signing of the concession agreements, AFC secured a $2 million grant from the United States Trade and Development Agency (USTDA) to facilitate comprehensive environmental and social studies, ensuring the project adheres to international best practices and environmental standards. The Zambia Lobito Rail Project is projected to foster considerable economic growth, generating approximately $3 billion in benefits for both nations, while also creating over 1,250 jobs in construction and operations and reducing emissions by around 300,000 tons annually. The project will serve as an essential export route, enhancing international and intra-African trade outcomes by connecting the Port of Lobito on the Atlantic coast to the Port of Dar es Salam in Tanzania on the Indian Ocean. Remarks from various officials underscore the importance of this development. Mr. Ricardo Viegas d’Abreu, Honourable Minister of Transport for Angola, expressed satisfaction in partnering with AFC, emphasizing the project’s potential to bolster Angola’s position as a regional logistics hub. Likewise, Mr. Frank Tayali MP, Honourable Minister of Transport for Zambia, highlighted the project’s role in modernizing infrastructure and improving local economies. Furthermore, Samaila Zubairu, President and CEO of AFC, remarked on the extensive implications of the project, noting its capacity to unlock significant trade opportunities, promote regional integration, and support the global energy transition by providing critical export routes for minerals. Overall, the Zambia Lobito Rail Project stands out as a pivotal infrastructure initiative that could transform economic dynamics between Angola, Zambia, and the broader region, addressing longstanding logistical challenges, and enhancing trade efficiency.
The Zambia Lobito Rail Project is an ambitious infrastructure development that aims to facilitate trade between Zambia, Angola, and beyond. It involves constructing a new railway line to improve connections to key ports, thereby supporting transport and export activities, especially in mining. Given the strategic locations of the Copperbelt in Zambia and key agricultural regions, the project promises to enhance economic productivity, address logistical bottlenecks, and promote regional integration. The involvement of multiple international stakeholders, including the U.S. government and the African Development Bank, signifies its importance on a global financial and developmental scale. The railway’s anticipated benefits also align with broader initiatives aimed at improving infrastructure across Africa, thus showcasing a collective effort towards socio-economic advancement in the region.
In summary, the signing of the concession agreements by the AFC with the governments of Angola and Zambia marks a significant advancement in the Zambia Lobito Rail Project. This infrastructure initiative aims to transform trade routes in Southern Africa, create substantial economic benefits, and support environmental standards through aligned assessments. The collaborative efforts among various governmental and international organizations highlight the project’s potential to facilitate critical trade connections, ultimately contributing to economic growth and regional integration.
Original Source: www.railwaysafrica.com
