AFC Partners with Angola and Zambia to Advance the Zambia Lobito Rail Project

The Africa Finance Corporation has signed concession agreements with Angola and Zambia to advance the Zambia Lobito Rail Project. The initiative aims to construct a crucial railway link between Angola and Zambia, enhancing trade efficiency and promoting economic development across various sectors. AFC will also receive $2 million in grant funding for environmental studies, with the project expected to create significant economic benefits, generate jobs, and reduce carbon emissions. Key officials express optimism about the project’s potential to transform regional trade and infrastructure.

In a momentous development for the Zambia Lobito Rail Project, the Africa Finance Corporation (AFC) has officially entered into concession agreements with both the Angolan and Zambian governments. The signing ceremony took place on September 23rd, facilitated by U.S. Secretary of State Antony J. Blinken alongside the Biden Administration’s G-7 Partnership for Global Infrastructure and Investment during the 79th session of the UN General Assembly. These agreements empower AFC to lead the financing, construction, ownership, and operation of this significant railway initiative. Previously appointed as the lead developer for the Zambia Lobito rail project, AFC collaborates with a range of stakeholders 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 ambitious project plans to establish an approximately 800-kilometer greenfield railway line linking the Benguela rail line in Luacano, Angola, to Zambia’s existing rail network in Chingola. Upon completion, the new trade corridor will enhance the efficient movement of goods and foster investments across various sectors including agriculture, mining, health, digital infrastructure, and energy access. In addition to the concession agreements, AFC secured a grant of $2 million from the United States Trade and Development Agency (USTDA). This grant will support the completion of environmental and social studies crucial for the project, enabling comprehensive Environmental and Social Impact Assessments (ESIA) to ensure alignment with international best practices and environmental standards. As the principal developer, AFC’s role is expected to stimulate economic activity, offering a strategic evacuation route for minerals while establishing a vital trade corridor across the continent from the Port of Lobito on the Atlantic coast to the Port of Dar es Salaam on the Indian Ocean. The project is projected to generate approximately $3 billion in economic benefits for both Angola and Zambia, significantly reduce carbon emissions by approximately 300,000 tons annually, and create over 1,250 jobs during the construction and operational phases. Honorably, Mr. Ricardo Viegas d’Abreu, Minister of Transport for Angola, 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.” Similarly, Mr. Frank Tayali MP, Minister of Transport for Zambia remarked, “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’s President & CEO, Samaila Zubairu, articulated the project’s significance by stating, “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.” The railway corridor will serve as a strategic alternative route for Zambia and the Democratic Republic of Congo to access international export markets. It is expected to enhance connectivity among key mining sectors, agricultural areas, and businesses throughout Zambia and the DRC, thereby facilitating cargo movement from the Copperbelt and Northwestern Provinces to Angolan ports and ultimately to Western markets.

The Zambia Lobito Rail Project is an infrastructural initiative aimed at enhancing trade and transportation in Southern Africa. The project is pivotal as it seeks to create a railway link between Angola and Zambia, which is expected to significantly contribute to economic development in the region by improving logistical efficiency and facilitating better access to international markets. The involvement of multiple stakeholders including the AFC, U.S. government, EU, and various African nations highlights the project’s importance on a global scale. The significance of environmental considerations and the role of the USTDA in funding studies essential for sustainability underscores a broader commitment to responsible infrastructure development.

The signing of concession agreements between the Africa Finance Corporation and the governments of Angola and Zambia marks a significant step forward in the Zambia Lobito Rail Project, anticipated to transform trade and economic relations in the region. By facilitating the construction of an essential railway corridor, the project pledges to unlock considerable economic benefits, enhance logistical capabilities, and promote regional integration. The collaboration among multiple nations and organizations reflects a unified effort to advance infrastructure that is not only economically beneficial but also adheres to environmental standards. The project offers hope for substantial socio-economic growth and trade enhancement in Southern Africa.

Original Source: www.railwaysafrica.com