IN a major step forward for the Zambia Lobito Rail Project, the Africa Finance Corporation (AFC), a leading African infrastructure provider, has signed concession agreements with the governments of Angola and Zambia to finance, construct, own, and operate the transformational railway. The agreements were finalised during a ceremonial signing hosted by US Secretary of State Antony Blinken at the G-7 Partnership for Global Infrastructure and Investment (PGI) event, held on the sidelines of the 79th UN General Assembly in New York.
Appointed last year as the lead developer, AFC is collaborating with the United States, the European Union, the African Development Bank, and the governments of Angola, Zambia, and the Democratic Republic of Congo. The project involves the construction of an 800-kilometre railway line connecting the Benguela rail line in Angola to Zambia’s railway network. This new trade corridor will streamline the movement of goods and promote investment in agriculture, health, mining, and infrastructure along the route.
As part of the deal, AFC also secured a $2 million grant from the US Trade and Development Agency (USTDA) to conduct environmental and social studies for the project. This funding will ensure that the rail development aligns with international environmental and social standards, marking the first time AFC has received USTDA support.
The Zambia Lobito Rail Project is expected to boost regional trade by creating a direct route between the Port of Lobito on the Atlantic coast and the Port of Dar es Salaam on the Indian Ocean, facilitating both global and intra-African trade. The railway will reduce emissions by 300,000 tons annually and is forecast to generate around $3bn in economic benefits for the region. Over 1,250 jobs will be created during construction and operation phases.
Angola’s Transport Minister, Ricardo Viegas d’Abreu, praised the project as a strategic initiative that will strengthen Angola’s role as a logistics hub, enhancing trade with Zambia and beyond. Zambia’s Transport Minister, Frank Tayali, echoed this sentiment, highlighting the project’s potential to modernise infrastructure and boost the nation’s economy.
Samaila Zubairu, President and CEO of AFC, emphasised the transformative impact of the project on regional industrialisation and integration. ‘The Zambia Lobito Rail Project will unlock significant trade potential and provide a crucial export route for copper and other minerals vital for the global energy transition,’ he said.
The new railway corridor will offer Zambia and the Democratic Republic of Congo (DRC) a shorter, more efficient route for exports, especially from mining regions, to international markets through the Port of Lobito. It is set to become a vital artery for the movement of goods from the Copperbelt region, significantly enhancing regional trade.
