AFC Selects Preferred Contractors for Zambia Lobito Railway, Paving the Way for Major Regional Trade and Mining Corridor
Africa Finance Corporation (AFC) has taken a significant step toward advancing the Zambia Lobito Railway Project by announcing the preferred Engineering, Procurement and Construction (EPC) contractors for the transformative cross-border rail development linking Zambia to Angola’s Atlantic coast.
The announcement follows a competitive international tender process for the 830-kilometre greenfield railway project, which is expected to strengthen regional trade, lower transport costs, and support industrial growth across Southern and Central Africa.
For the Zambian section of the railway, AFC selected a consortium comprising Webuild S.p.A., Mota-Engil and IC İçtaş Construction as the preferred bidder.
Meanwhile, the Angolan section has been awarded to a consortium of Mota-Engil and Odebrecht Engineering and Construction as the preferred contractor.
Contract negotiations are scheduled to begin in November 2026, with final EPC agreements expected to be concluded within eight to twelve weeks, subject to successful technical, commercial and legal discussions.
The railway forms a critical component of the broader Lobito Corridor initiative, designed to connect Zambia’s mining and agricultural regions to the Port of Lobito in Angola.
By providing a direct export route to the Atlantic Ocean, the project is expected to enhance the competitiveness of African mineral exports, particularly copper and cobalt, while also supporting agricultural trade and regional economic integration.
AFC, which is leading the development of the project through Trans African Rail Company FZCO (TARC) and its associated project companies, believes the railway will unlock billions of dollars in economic value by promoting industrialisation and encouraging local value addition within Africa’s mineral supply chains.
Improved logistics infrastructure is also expected to create jobs, stimulate investment and support the development of industrial hubs along the corridor.
AFC President and Chief Executive Officer Samaila Zubairu said the project represents a strategic investment in Africa’s productive capacity, helping connect resources, businesses and communities while supporting the growth of battery mineral and agricultural value chains.
The latest milestone builds on several years of progress. Since the signing of a memorandum of understanding in October 2023 involving the governments of Zambia and Angola, alongside support from the European Union, the United States, Italy and the African Development Bank, the project has advanced through feasibility studies, concession agreements, intergovernmental arrangements and preliminary engineering design work.
The Lobito Corridor has also become a flagship infrastructure initiative under Italy’s Mattei Plan for Africa, which aims to strengthen economic partnerships and investment across the continent.
As part of this support, Italian development finance institution CDP, backed by export credit agency SACE, has committed a €250 million financing facility to support Italian participation in infrastructure projects, including the railway.
Environmental and Social Impact Assessments, together with Resettlement Action Plans, have also progressed in parallel with project development, helping move the railway closer to construction readiness.
Once completed, the Zambia Lobito Railway is expected to transform regional connectivity by providing a modern transport link between Zambia and Angola, reducing logistics bottlenecks, facilitating exports and strengthening Africa’s position in global mineral and agricultural value chains.
AFC and its partners continue to mobilise funding and advance implementation efforts as the project moves toward the construction phase.
