The Lobito Rail Project has reached a major milestone as Africa Finance Corporation (AFC) signed concession agreements with the governments of Angola and Zambia for its financing, construction, and operation.
The signing, hosted by U.S. Secretary of State Antony J. Blinken during the 79th session of the UN General Assembly, solidifies AFC’s role as the lead developer in this transformational 800km railway connecting Angola’s Benguela rail line to Zambia’s existing railway infrastructure. This project is set to enhance trade, investments, and economic growth across key sectors like agriculture, mining, and infrastructure.
Alongside the concession agreements, AFC secured a $2 million grant from the U.S. Trade and Development Agency (USTDA) to conduct Environmental and Social Impact Assessments (ESIA), ensuring the project meets global standards. The Zambia Lobito Rail will not only facilitate the movement of minerals and goods across Africa but is expected to create $3 billion in economic benefits, reduce emissions by 300,000 tons annually, and generate over 1,250 jobs in construction and operations.
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Angola’s Minister of Transport, Mr. Ricardo Viegas d’Abreu, emphasized the project’s potential to enhance Angola’s role as a logistics hub, while Zambia’s Minister of Transport, Mr. Frank Tayali, highlighted its significance in modernizing infrastructure and boosting Zambia’s economy. AFC President & CEO, Samaila Zubairu, noted that the project would accelerate industrial development and regional integration, offering a vital export route for copper and other critical minerals.
Once completed, the Zambia Lobito Rail Project will offer an efficient alternative route to international markets, linking Zambia and the Democratic Republic of Congo to the Port of Lobito. This corridor will significantly improve the movement of cargo from Zambia’s Copperbelt, unlocking vast trade and industrial opportunities.
