Africa Finance Corporation (AFC) has taken a major step forward in the Zambia Lobito Rail Project by signing concession agreements with the governments of Angola and Zambia. These agreements cover the financing, construction, ownership, and operation of the transformative railway. The ceremonial signing, held on the 23rd and hosted by U.S. Secretary of State Antony J. Blinken, took place alongside the 79th session of the UN General Assembly (UNGA 79) as part of the Biden Administration’s G-7 Partnership for Global Infrastructure and Investment (PGI). This clears the way for AFC to lead and complete the project’s development.
Last year, AFC was appointed as lead developer on the Zambia Lobito rail project in collaboration with the United States Government, the European Union, the African Development Bank, and the governments of Angola, the Democratic Republic of Congo, and Zambia. The project involves the construction of an approximately 800km greenfield rail line connecting the Benguela rail line in Luacano, Angola, to the existing Zambia Railways Line in Chingola, Zambia. Once completed, the trade corridor will facilitate the efficient movement of goods and promote investments in agriculture, health, digital infrastructure, mining, and electricity access along the corridor.
Concurrent to signing the concession agreements, AFC also signed an agreement to receive US$ 2 million in grant funding from the United States Trade and Development Agency (USTDA) towards completion of the environmental and social studies for the project. The grant, which marks the first time the Corporation will tap into USTDA funding, will facilitate comprehensive Environmental and Social Impact Assessments (ESIA) to ensure that the Zambia Lobito Rail Project aligns with international best practices and environmental standards.
AFC will play the pivotal role of lead developer on the rail project, which not only offers an efficient evacuation route for minerals and metals from the region but also helps establish a trade corridor across Africa from the Port of Lobito on the coast of the Atlantic Ocean to the Port of Dar es Salam in Tanzania on the coast of the Indian Ocean, facilitating global and intra-African trade. The railway is expected to create economic benefits of approximately $3 billion across both countries, reduce emissions by approximately 300,000 tons per year, and add over 1,250 jobs across construction and operations.
The Honourable Minister of Transport for Angola, Mr. Ricardo Viegas d’Abreu, noted, “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.”
Mr. Frank Tayali MP, Honourable Minister of Transport for Zambia, added, “The Zambia Lobito Rail Project is an important milestone in our efforts to modernize 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.”
“The Zambia Lobito Rail Project represents a game-changing development for the region, unlocking tremendous potential for trade, industrialization, and socio-economic growth.,” said Samaila Zubairu, President & CEO of Africa Finance Corporation. “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,” he added.
The corridor will create a new strategic route for Zambia and the DRC to access international export markets. By providing the shortest path for exports and imports, it will connect key mining regions, agricultural hubs, and businesses in Zambia and the DRC to the Port of Lobito. This will greatly enhance cargo movement from Zambia’s Copperbelt and Northwestern Provinces through Angola to Western markets.
