NEW YORK, NY / ACCESSWIRE / September 25, 2024 / In a significant milestone for the Zambia Lobito Rail Project, Africa Finance Corporation (AFC) (www.AfricaFC.org), the continent's leading infrastructure solutions provider, has signed concession agreements with the governments of Angola and Zambia for the financing, construction, ownership and operation of the transformational railway project. The agreements, which were signed yesterday in a ceremonial signing hosted by U.S. Secretary of State Antony J. Blinken and the Biden Administration's G-7 Partnership for Global Infrastructure and Investment (PGI) on the sidelines of the 79th session of the UN General Assembly (UNGA 79), paves the way for the Corporation to spearhead and complete the development of the railway.
Last year, AFC was appointed lead developer on the Zambia Lobito rail project in collaboration with the United States Government, the European Union, the African Development Bank and the governments of Angola, the Democratic Republic of Congo and Zambia. The project involves the construction of approximately 800km greenfield rail line connecting the Benguela rail line in Luacano, Angola, to the existing Zambia Railways Line in Chingola, Zambia. Once completed, the trade corridor will facilitate the efficient movement of goods and promote investments in agriculture, health, digital infrastructure, mining, and electricity access along the corridor.
Concurrent to signing the concession agreements, AFC also signed an agreement to receive US$ 2 million grant funding from the United States Trade and Development Agency (USTDA) (https://apo-opa.co/3zINnnM), towards completion of the environmental and social studies for the project. The grant, which marks the first time the Corporation will tap into USTDA funding, will facilitate comprehensive Environmental and Social Impact Assessments (ESIA) to ensure that the Zambia Lobito Rail Project aligns with international best practices and environmental standards.
AFC will play the pivotal role of lead developer on the rail project which not only offers an efficient evacuation route for minerals and metals from the region but helps establish a trade corridor across Africa from the Port of Lobito on the coast of the Atlantic Ocean to the Port of Dar es Salam in Tanzania on the coast of the Indian Ocean, facilitating global and intra-African trade. The railway is expected to create economic benefit of approximately $3 billion across both countries, reduce emissions by approximately 300,000 tons per year and add over 1,250 jobs across construction and operations.
The Honourable Minister of Transport for Angola Mr Ricardo Viegas d'Abreu noted, "We are pleased to partner with Africa Finance Corporation on this transformative project which will deepen our nation's role as a regional logistics hub, boosting trade not only with Zambia but with the rest of the world."
Mr Frank Tayali MP, Honourable Minister of Transport for Zambia added, "The Zambia Lobito Rail Project is an important milestone in our efforts to modernise infrastructure, enhance the competitiveness of our economy, and improve the livelihoods of our people. We look forward to partnering with Africa Finance Corporation to deliver on this groundbreaking project."
"The Zambia Lobito Rail Project represents a game-changing development for the region, unlocking tremendous potential for trade, industrialisation, and socio-economic growth.," said Samaila Zubairu, President & CEO of Africa Finance Corporation. "AFC is proud to partner with the governments of Angola and Zambia to deliver world-class rail infrastructure, which will accelerate industrial development in Africa, promote regional integration and provide a vital export route for copper and other critical minerals for the global energy transition," he added.
The corridor will provide an alternative strategic route to international export markets for Zambia and DRC. It will offer the shortest route for export and imports, linking key mining regions, agricultural clusters and businesses in Zambia and DRC to the Port of Lobito. It will significantly facilitate the movement of cargo from the Copperbelt and Northwestern Provinces, through Angola to the Western markets.
Distributed by APO Group on behalf of Africa Finance Corporation (AFC).
Download image: https://apo-opa.co/3XH0gqm (Caption: From left to right: Honourable Minister of Transport for Zambia, Mr. Frank Tayali MP, President & CEO of Africa Finance Corporation, Samaila Zubairu, and Honourable Minister of Transport for Angola, Mr. Ricardo Viegas d'Abreu, at the signing of the Zambia Lobito Rail Project concession agreements during the 79th UN General Assembly)
Media Enquiries:
Yewande Thorpe
Communications
Africa Finance Corporation
Mobile: +234 1 279 9654
Email: yewande.thorpe@africafc.org
About AFC:
AFC was established in 2007 to be the catalyst for pragmatic infrastructure and industrial investments across Africa. AFC's approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development, and risk capital to address Africa's infrastructure development needs and drive sustainable economic growth.
Seventeen years on, AFC has developed a track record as the partner of choice in Africa for investing and delivering on instrumental, high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. AFC has 43 member countries and has invested US$13 billion across Africa since inception.
SOURCE: Africa Finance Corporation (AFC)
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