AFC Partners with Angola and Zambia for the Zambia Lobito Rail Project

The Africa Finance Corporation has signed concession agreements with Angola and Zambia to develop the Zambia Lobito Rail Project, an initiative aimed at establishing a vital trade corridor across Africa. The project will facilitate mineral transportation, bolster economic growth, and receive funding support for environmental studies, while creating job opportunities and reducing emissions.

The Africa Finance Corporation (AFC) has entered into significant concession agreements with the governments of Angola and Zambia aimed at advancing the Zambia Lobito Rail Project. This project is envisaged to create an efficient transport route for the evacuation of minerals and metals within the region, while also establishing an important trade corridor traversing the African continent, connecting the Port of Lobito on the Atlantic Ocean to the Port of Dar es Salaam in Tanzania on the Indian Ocean. The ceremonial signing of these agreements took place on the sidelines of the 79th session of the United Nations General Assembly, 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. AFC has been designated as the lead developer for the project in conjunction with various international collaborators, including the United States Government, the European Union, the African Development Bank, as well as the governments of Angola and the Democratic Republic of Congo. The ambitious initiative entails the construction of approximately 800 kilometers of new railway line, which will connect Angola’s Benguela rail line at Luacano to Zambia’s existing railway system at Chingola. Once operational, this trade corridor is expected to facilitate efficient goods movement and is anticipated to attract investments across various sectors, including agriculture, health, digital infrastructure, mining, and energy. Additionally, in conjunction with the signing of these concession agreements, AFC successfully secured a grant of $2 million from the United States Trade and Development Agency (USTDA) to fund environmental and social studies for the project, marking a noteworthy first-time collaboration with USTDA. This funding will assist in conducting comprehensive Environmental and Social Impact Assessments (ESIA), ensuring adherence to international environmental standards. AFC’s pivotal role in leading the Zambia Lobito Rail Project is underscored by its potential contributions to regional economies, the project is projected to deliver economic benefits of approximately $3 billion, reduce greenhouse gas emissions by about 300,000 tons per annum, and create over 1,250 jobs in construction and operational phases. Ricardo Viegas d’Abreu, Minister of Transport for Angola, expressed optimism regarding the partnership with AFC, anticipating it to enhance Angola’s position as a logistics hub that fosters global trade. Frank Tayali MP, Minister of Transport for Zambia, emphasized the project’s significance in modernizing national infrastructure and improving economic competitiveness and livelihoods. Samaila Zubairu, President and CEO of AFC, highlighted the transformative potential of the Zambia Lobito Rail Project, asserting its capability to spur trade, industrialization, and socio-economic progress within the region. He noted that the rail corridor will provide an essential alternative export route for Zambia and the DRC, linking critical mining areas and agricultural regions directly to the Port of Lobito. Ultimately, this expedient network is set to enhance access to international export markets for Zambia and the DRC economically and efficiently.

The Zambia Lobito Rail Project represents a strategic initiative designed to enhance trade and commerce across the African continent. By linking key ports and resource-rich regions, the project aims to facilitate the movement of goods, thereby boosting economic activity and regional integration. The collaboration of multiple stakeholders, including governments and international agencies, underlines the significance of this project in addressing infrastructural gaps in Africa and promoting sustainable development.

In conclusion, the Zambia Lobito Rail Project stands as a landmark agreement between the AFC, Angola, and Zambia, with the potential to revolutionize trade dynamics in the region. By fostering efficient transport routes and generating substantial economic benefits, this initiative not only aims to propel local economies but also paves the way for broader continental integration. The project exemplifies a significant stride towards modernizing infrastructure and strengthening African economies to better position them in the global market.

Original Source: www.logupdateafrica.com