Lobito Corridor: A Strategic Leap for African-Led Infrastructure and Regional Trade

Lobito Corridor: A Strategic Leap for African-Led Infrastructure and Regional Trade

The recent signing of the Intergovernmental Agreement (IGA) between Zambia and Angola marks a pivotal milestone in the development of the Lobito Corridor—one of Africa’s most ambitious and transformative infrastructure initiatives.

Witnessed by the highest levels of both governments, the agreement affirms a joint commitment to develop, finance, construct, and operate an 830-kilometre railway from Luacano in Angola to Chingola in Zambia.

For decades, Africa’s capacity to independently envision and deliver large-scale infrastructure projects has been underestimated. The Lobito Corridor is a direct challenge to that narrative.

Connecting Angola’s Port of Lobito with Zambia—and eventually serving the Democratic Republic of Congo (DRC)—the corridor is poised to revolutionize regional trade.

By slashing export logistics times from six weeks to one, it will catalyze industrial development, create thousands of jobs, and stimulate inclusive economic growth.

Progress is already underway. In 2024, a major breakthrough came when the Africa Finance Corporation (AFC), serving as the lead project developer, signed concession agreements with the governments of Angola and Zambia during the United Nations General Assembly. This secured AFC’s mandate to finance, construct, and operate the Zambia-Lobito Railway Line.

The newly signed IGA strengthens this foundation, demonstrating deeper political alignment and sovereign commitment.

Zambia is complementing its participation in the railway project with parallel infrastructure and policy reforms—transforming Solwezi into an international airport, fostering agricultural and urban development in the North-Western Province, and introducing measures to shift 40% of freight traffic from road to rail.

These actions are positioning Zambia as a land-linked logistics hub, central to a more integrated and efficient regional trade network.

As implementation advances, technical studies are nearing completion, with procurement and contractor selection imminent.

Financing milestones are also progressing, with a target to finalize arrangements by the end of 2026 and full operational readiness projected by 2031. Capital markets are being explored as one potential funding avenue.

The journey is not without challenges—from weather-related survey delays to clearing unexploded ordnance in post-conflict areas—but these are being met with resilience and exceptional cross-border coordination.

The Lobito Corridor stands out for its depth of African integration, bringing together governments, engineers, environmental experts, and logistics professionals in a unified effort.

Local leadership is steering the initiative, with international capital following its lead.

As the project’s lead financial advisor and developer, AFC is working closely with all stakeholders to de-risk delivery and mobilize large-scale investment.

Support from a coalition of partners—including Angola, Zambia, the DRC, the United States, the European Union, Italy, and the African Development Bank—has been crucial. However, the project’s core strength lies in its alignment with African priorities, leadership, and long-term vision.

Unlike traditional “mine-to-port” infrastructure models, the Lobito Corridor embodies a strategic and inclusive approach to development.

By strengthening logistics, unlocking mineral and agricultural value chains, and supporting new industrial clusters, the project will reshape regional trade and accelerate Africa’s integration into global value chains.

In short, the Lobito Corridor is more than a railway—it’s a blueprint for Africa’s infrastructure-led transformation.

It connects more than ports; it connects ambition with opportunity.

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