Africa Finance Corporation and AfDB Back $5 Billion Lobito Corridor Railway to Connect Zambia Copper Mines to Angola Port
The Africa Finance Corporation (AFC) and the African Development Bank (AfDB) have each committed $500 million toward the development of the Lobito Corridor railway project, a strategic infrastructure link designed to connect Zambia’s copper-rich regions to global markets through the Angolan port of Lobito.
In addition, Italy will contribute approximately $320 million to the project, according to AFC Executive Director and Chief Investment Officer Sameh Shenouda, who made the announcement at a conference in Nairobi, Kenya. The AFC is serving as the lead developer and sponsor of the initiative.
Major Regional Rail Investment
The proposed railway will span approximately 830 kilometres (515 miles) and is expected to cost up to $5 billion in total.
Construction is scheduled to begin within the year, with completion targeted for 2030.
Shenouda noted that the project’s financial viability depends on securing sufficient freight commitments.
“For this project to be viable, we need offtakes of around 2.5 million to 3 million tons,” he said. “We already have commitments for one million tons and clear visibility to reach up to five million tons.”
Strategic Global and Geopolitical Importance
The Lobito Corridor is widely viewed as a strategic infrastructure project with global significance.
The United States and the European Union have positioned it as a flagship initiative aimed at strengthening supply chain security and reducing dependence on existing trade routes, while also counterbalancing China’s expanding influence in Africa.
The corridor is also critical for securing access to essential minerals such as copper and cobalt, which are vital for electric vehicle batteries, renewable energy technologies, and the aerospace and defense industries.
Project Structure and Expansion
The overall project consists of two major components. The first involves the refurbishment of an existing railway line linking the Atlantic port of Lobito in Angola to southern regions of the Democratic Republic of Congo.
The second and more ambitious phase includes the construction of a new rail extension into Zambia’s North-Western Province and Copperbelt region, home to some of the continent’s largest copper deposits.
The Zambian section represents the most significant new rail infrastructure development in the country since the 1970s, when the TAZARA railway, financed by China, connected Zambia’s mining belt to the port of Dar es Salaam in Tanzania.
Procurement and Construction Timeline
According to AFC, nine engineering, procurement, and construction (EPC) contractors from multiple countries recently visited the project site in Zambia.
These firms are expected to submit bids in May 2026, with the evaluation process scheduled for completion later in the year.
“We expect to select the EPC contractor by July or August, and break ground before the end of the year or in early 2027,” Shenouda said.
Financial close for the project is projected for the fourth quarter of 2027, according to the AFC.
Economic Impact and Trade Efficiency
Once completed, the railway is expected to significantly transform regional logistics by reducing cargo transit times between Zambia’s Copperbelt and the Atlantic coast from approximately 16 days to 7 days.
The project is also forecast to generate an estimated $3 billion in economic impact for Angola and Zambia through improved trade efficiency, reduced transport costs, and increased export competitiveness for critical minerals.
The Lobito Corridor is increasingly seen as a transformative infrastructure investment that will reshape trade flows in Central and Southern Africa while strengthening the region’s integration into global supply chains.
