AFC Signs Concession Agreements to Advance Zambia Lobito Rail Project

Africa Finance Corporation (AFC) has signed key concession agreements with Angola and Zambia to develop the Zambia Lobito rail project, a significant trade corridor connecting the Benguela rail line in Angola to Zambia Railways. This initiative, bolstered by a $2 million grant from the USTDA for environmental assessments, aims to boost trade, enhance regional integration, and bring economic benefits projected at $3 billion, while also creating over 1,250 jobs and reducing carbon emissions.

Africa Finance Corporation (AFC) has entered into pivotal concession agreements with the nations of Angola and Zambia aimed at financing, constructing, owning, and operating the Zambia Lobito rail project. This significant development comes as part of a ceremonial signing event that took place on September 24, hosted by U.S. Secretary of State Antony J. Blinken during the seventy-ninth session of the United Nations General Assembly. The AFC is set to lead the project, which will establish a rail corridor approximately 800 kilometers long that connects the Benguela railway line in Luacano, Angola, to the Zambia Railways line in Chingola, Zambia. This infrastructure initiative is anticipated to enhance regional trade dynamics, serving as a critical logistics hub for Angola, Zambia, and beyond. According to Angola’s Transport Minister, Ricardo Viegas d’Abreu, this partnership represents a transformative endeavor that will elevate the nation’s strategic role in logistics, significantly boosting trade. Zambia’s Transport Minister, Frank Tayali, echoed these sentiments, stating the project symbolizes a major infrastructural leap for the region, which will modernize transport, enhance economic competitiveness, and ultimately improve the quality of life for citizens. In aligning with global environmental standards, AFC has secured a $2 million grant from the U.S. Trade and Development Agency to conduct necessary environmental and social assessments for the rail project. This pioneering usage of USTDA funding marks a notable step in the project’s development. Furthermore, AFC’s role is critical in creating an efficient transport route, facilitating trade of minerals and goods across Africa—from the Port of Lobito on the Atlantic Ocean to Dar es Salaam in Tanzania on the Indian Ocean. The economic projections for the project anticipate a considerable benefit of around $3 billion across both nations, with the potential to create over 1,250 jobs throughout construction and operation phases and reduce carbon emissions by approximately 300,000 tons annually. AFC President and CEO, Samaila Zubairu, remarked on the project as a pivotal achievement for African development, noting its significance in supporting industrialization, fostering regional integration, and providing essential export avenues for crucial minerals. This corridor will also enhance Zambia and the Democratic Republic of Congo’s connections to international markets, facilitating efficient cargo transit from the Copperbelt through Angola to Western markets.

The Zambia Lobito rail project is integral to enhancing trade routes in Southern Africa, connecting major mining and agricultural sectors to international markets. The need for improved transportation infrastructure in the region has been driven by the increasing demand for efficient logistics to facilitate the export of minerals and other goods. In collaboration with multiple stakeholders, including the U.S. government and the African Development Bank, AFC’s leadership in this project signifies a concerted effort to foster economic growth and regional integration through infrastructural development.

In conclusion, the signing of the concession agreements by AFC with Angola and Zambia signifies a strategic advancement in regional logistics and economic development. The Zambia Lobito rail project promises to establish a significant trade corridor, enhance the transport of goods, and provide essential environmental assessments to ensure compliance with international standards. The anticipated economic growth and job creation underscore the project’s potential to transform the landscape of trade in the region.

Original Source: www.engineeringnews.co.za