Sub-Saharan Africa’s most exciting bulk rail corridor to date has added another notch to its timeline of developments following the announcement that Angola and Zambia have signed concession agreements with the multilateral Pan-Africa institution, Africa Finance Corporation (AFC).
Although the specific financial value of the concession agreements for the Zambia Lobito Rail Project has not been disclosed, the project is expected to generate significant economic benefits, estimated at approximately $3 billion, across both Zambia and Angola.
Signed during a ceremony hosted by US Secretary of State Antony Blinken at the 79th session of the UN General Assembly on Wednesday, a $2 million grant provided by America’s Trade and Development Agency will support environmental and social impact assessments for the project, further indicating financial backing for its development.
The agreements will enable AFC to lead the financing, construction, ownership, and operation of the Lobito railway project. This project is expected to enhance trade connectivity between Zambia and the Democratic Republic of the Congo via the Port of Lobito in Angola.
The railway corridor is anticipated to provide the shortest route for trade in the region, significantly improving logistics and economic opportunities.
Additionally, AFC announced that a key feasibility study for the project had been completed, further solidifying the groundwork for its development.
The initiative is part of broader efforts to bolster investment in infrastructure across Africa, aligning with global partnerships aimed at enhancing transcontinental connectivity.
