AFC Signs Concession Agreements with Angola and Zambia for Lobito Rail Project

The Africa Finance Corporation (AFC) has signed agreements with Angola and Zambia to advance the Zambia Lobito rail project. This initiative involves the construction of an 800 km railway, enhancing trade logistics and expected to yield significant economic benefits, including job creation and emissions reduction. The project is backed by US funding for environmental assessments, ensuring alignment with international standards.

The Africa Finance Corporation (AFC) has formally established concession agreements with the governments of Angola and Zambia to facilitate the financing, construction, ownership, and operation of the Zambia Lobito rail project. These agreements, signed during a ceremony on September 24, 2023, attended by US Secretary of State Antony J. Blinken and as part of the Biden Administration’s G7 Partnership for Global Infrastructure and Investment, aim to enhance regional trade and infrastructure. The Lobito rail project, which stretches approximately 800 kilometers, will connect Angola’s Benguela rail line in Luacano to Zambian railways in Chingola. This initiative is expected to significantly improve transport logistics for goods between Zambia and the global market, reinforcing Angola’s strategic position as a regional logistics hub. Zambia’s Transport Minister, Frank Tayali, emphasized this project as a critical step in modernizing infrastructure and driving economic growth. In conjunction with these agreements, the AFC has secured a $2 million grant from the US Trade and Development Agency (USTDA) aimed at facilitating environmental and social studies associated with the project, thereby upholding international best practices. Projected outcomes of the Zambia Lobito rail project include the creation of over 1,250 jobs, a reduction of approximately 300,000 tons per year in emissions, and an overall economic benefit of $3 billion across both Angola and Zambia. The initiative is poised to foster a vital trade corridor from the Port of Lobito in Angola to the Port of Dar es Salaam in Tanzania, further boosting regional trade.

The Zambia Lobito rail project is a major infrastructural undertaking designed to enhance the transport network between Angola and Zambia, making significant strides in regional logistics. It is intended to create a crucial corridor for the movement of goods across Africa, linking key agricultural and mining sectors to international markets. By improving infrastructure, the project aims to facilitate trade, industrialization, and create economic opportunities, addressing the growing needs for better connectivity in the region. The collaborative effort involves multiple stakeholders, including US entities, enhancing the potential for structured contribution towards economic development in Africa.

In summary, the signing of concession agreements by the Africa Finance Corporation with Angola and Zambia marks a significant milestone in advancing the Zambia Lobito rail project. This initiative is expected to play a transformative role in enhancing regional infrastructure, facilitating trade, and providing substantial economic benefits across both countries. By aligning with international standards through environmental assessments and engaging diverse stakeholders, the project is set to address logistical challenges while promoting sustainable development.

Original Source: www.engineeringnews.co.za