AppraisalAfrica Finance Corporation

AFC signs concession agreements for the Zambia–Lobito rail project

Summary

Africa Finance Corporation (AFC) signed concession agreements with the governments of Angola and Zambia on 25 September 2024 for the financing, construction, ownership and operation of the Zambia Lobito Rail Project. The project involves construction of approximately 800km of greenfield rail connecting the Benguela rail line in Luacano, Angola to the Zambia Railways Line in Chingola, Zambia. AFC also received US$2 million in grant funding from the United States Trade and Development Agency (USTDA) for environmental and social studies. The completed corridor is expected to generate approximately $3 billion in economic benefit, reduce emissions by 300,000 tons per year, and create over 1,250 jobs.

Financing

US$2 million USTDA grant funding

Location

Angola and Zambia (Benguela rail line in Luacano, Angola to Chingola, Zambia)

Parties

Africa Finance CorporationGovernment of AngolaGovernment of ZambiaUnited States GovernmentEuropean UnionAfrican Development BankGovernment of Democratic Republic of CongoUnited States Trade and Development Agency (USTDA)

Key dates

25 September 2024AFC signed concession agreements with governments of Angola and Zambia for the Zambia Lobito Rail Project

Notable terms

Environmental and Social Impact Assessments (ESIA) to align with international best practices and environmental standards
Approximately 800km greenfield rail line construction
Expected to reduce emissions by approximately 300,000 tons per year
Expected to create over 1,250 jobs across construction and operations
Connects Port of Lobito on Atlantic Ocean to Port of Dar es Salaam in Tanzania on Indian Ocean

Tearsheet extracted by AI from the source document and may be incomplete. Always verify against the original.

Related project: Zambia–Lobito rail extension