Africa Finance Corporation (AFC) has finalized concession agreements with the governments of Angola and Zambia, marking a significant step toward the development of the Zambia Lobito Rail Project. This ambitious initiative will involve the financing, construction, ownership, and operation of an 800-kilometer greenfield rail link designed to connect Zambia’s railway network with Angola’s Benguela rail line. The new rail corridor is expected to provide the most direct and efficient route for imports and exports, facilitating trade between Zambia and the Democratic Republic of the Congo (DRC).
The Zambia Lobito Rail Project aims to enhance connectivity between vital mining regions, agricultural sectors, and various businesses, linking them directly to the Port of Lobito. This connection is poised to boost regional trade and streamline the transportation of goods across the Copperbelt region and Northwestern Provinces, ultimately opening up access to western markets. The project is expected to be a catalyst for economic growth, fostering industrialization and enhancing the socioeconomic landscape of the areas it serves.
Samaila Zubairu, President & CEO of AFC, emphasized the transformative potential of the project, stating, “The Zambia Lobito Rail Project is a pivotal development for the region, unlocking substantial opportunities for trade, industrialization, and socioeconomic advancement.” He underscored that improved rail infrastructure will not only facilitate the movement of goods but also create jobs and stimulate local economies.
In addition to securing the concession agreements, AFC has also obtained a $2 million grant from the U.S. Trade and Development Agency. This funding will be directed toward essential environmental and social studies for the project, allowing for comprehensive Environmental and Social Impact Assessments. These assessments are crucial to ensuring that the project meets international standards and minimizes any potential adverse effects on local communities and ecosystems.
With this initiative, AFC aims to position the Zambia Lobito Rail Project as a cornerstone of infrastructure development in the region, enhancing trade routes and supporting economic integration across Southern Africa.
