The Africa Finance Corporation (AFC) has achieved a major milestone in the Zambia Lobito Rail project by entering concession agreements with the governments of Angola and Zambia.
The formal signing took place alongside the 79th United Nations General Assembly, with support from the U.S. G-7 Partnership for Global Infrastructure and Investment (PGI) and U.S. Secretary of State Antony Blinken.
These agreements position the AFC as the lead entity for funding, constructing, operating, and managing the Lobito Rail project, an essential infrastructure initiative aimed at boosting trade connectivity between Angola and Zambia.
Last year, AFC was appointed the principal developer for the Zambia Lobito rail line in partnership with Angola, the Democratic Republic of the Congo, Zambia, the United States, the European Union, and the African Development Bank.
This collaborative project seeks to construct an 800-kilometer Greenfield rail line linking Zambia’s Chingola rail network to Angola’s Benguela rail line in Luacano, creating an efficient corridor for the movement of goods across borders.
Once operational, the rail line is expected to stimulate investments across various sectors, including mining, agriculture, energy, and digital infrastructure.
Coinciding with the signing of the concession agreements, the United States Trade and Development Agency (USTDA) awarded the AFC a $2 million grant.
This grant, marking the AFC’s first engagement with USTDA funding, will support Environmental and Social Impact Assessments (ESIAs) essential to ensure the project’s compliance with global environmental standards.
AFC’s leadership in this project is pivotal for regional trade, establishing a key route for transporting minerals and metals, particularly copper, from Zambia and the DRC.
The rail line is part of a strategic corridor linking the Atlantic Ocean’s Port of Lobito to the Indian Ocean’s Port of Dar es Salaam, expanding global and intra-African trade routes.
Economic projections indicate the rail project could contribute nearly $3 billion to Angola and Zambia, create over 1,250 jobs during development and operations, and reduce carbon emissions by approximately 300,000 tons annually.
Both Angola’s Minister of Transport, Ricardo Viegas d’Abreu, and Zambia’s Minister of Transport, Frank Tayali, hailed the initiative as a transformative step toward regional economic competitiveness, emphasizing the benefits of modernized infrastructure and strengthened logistics.
AFC President and CEO Samaila Zubairu underscored the project’s transformative impact on trade, industrialization, and socio-economic growth.
He affirmed AFC’s commitment to delivering world-class infrastructure, essential for the global energy transition, and providing key export routes for critical minerals.
The Zambia Lobito Rail project marks a significant step toward regional connectivity, linking Zambia’s and the DRC’s key mining and agricultural areas to the Port of Lobito.
It promises substantial economic and environmental benefits, strengthening trade capabilities and creating long-lasting advantages for both nations.
