Africa Finance Corporation (AFC) has made significant progress on the Zambia Lobito Rail Project by signing concession agreements with the governments of Angola and Zambia.
These agreements, finalized during a ceremonial signing on September 23, cover the financing, construction, ownership, and operation of the railway. t
The event, hosted by U.S. Secretary of State Antony J. Blinken, coincided with 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 milestone allows AFC to lead the project’s development.
Last year, AFC was appointed as the lead developer for the Zambia Lobito Rail Project in collaboration with the U.S. Government, the European Union, the African Development Bank, and the governments of Angola, the Democratic Republic of Congo, and Zambia.
The project will construct an approximately 800 km greenfield rail line connecting the Benguela rail line in Luacano, Angola, to Zambia Railways in Chingola, Zambia.
Once completed, this trade corridor will enhance the movement of goods and stimulate investments in agriculture, health, digital infrastructure, mining, and electricity access.
In conjunction with the concession agreements, AFC signed a $2 million grant agreement with the U.S. Trade and Development Agency (USTDA) for environmental and social studies related to the project.
This funding marks AFC’s first engagement with USTDA and will facilitate comprehensive Environmental and Social Impact Assessments (ESIA) to align the project with international best practices and environmental standards.
AFC will play a central role as the lead developer, providing an efficient transport route for minerals and metals while establishing a vital trade corridor across Africa, connecting the Port of Lobito on the Atlantic Ocean with the Port of Dar es Salaam on the Indian Ocean.
The railway is projected to generate approximately $3 billion in economic benefits for both countries, reduce emissions by about 300,000 tons annually, and create over 1,250 jobs during construction and operations.
Angola’s Minister of Transport, Mr. Ricardo Viegas d’Abreu, stated, “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 with Zambia and beyond.”
Zambia’s Minister of Transport, Mr. Frank Tayali, added, “The Zambia Lobito Rail Project is a crucial step in modernizing our infrastructure, enhancing our economy’s competitiveness, and improving the livelihoods of our people. We look forward to collaborating with AFC on this groundbreaking project.”
Samaila Zubairu, President & CEO of AFC, emphasized, “The Zambia Lobito Rail Project represents a game-changing development for the region, unlocking vast potential for trade, industrialization, 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.”
This corridor will establish a strategic route for Zambia and the DRC to access international export markets, connecting key mining areas, agricultural hubs, and businesses in Zambia and the DRC to the Port of Lobito.
It will significantly enhance cargo movement from Zambia’s Copperbelt and Northwestern Provinces to Western markets.
