Groundbreaking Lobito Rail Project Set for 2026 Launch
The Zambia-Lobito Rail project is set to begin construction by early 2026, following significant backing from US President Joe Biden's recent visit to Angola.
The Africa Finance Corporation (AFC), the project's lead developer, announced crucial commitments highlighting the project's transformative potential, including up to $500 million in financing. During the Lobito Corridor Leaders Summit, co-hosted by President Biden and Angola's President Joao Lourenço, AFC President Samaila Zubairu detailed plans for a greenfield rail project that aims to enhance economic connectivity.
The project will feature a Memorandum of Understanding with KoBold Metals, ensuring a minimum of 300,000 tons of copper and related freight annually, alongside a $100 million investment in Kobaloni Energy for Zambia’s first battery-grade copper sulphate facility. “This initiative exemplifies what can be achieved when African leaders unite with global partners for a common goal,” Zubairu stated.
The Lobito Corridor will link the Port of Lobito in Angola to Zambia, with future plans to extend to Tanzania’s Port of Dar es Salaam, bolstering regional trade. AFC is also strategizing to attract investments from multilateral development banks and African pension funds to ensure sustainability. The summit demonstrated progress in the Lobito Trans-Africa Corridor, with AFC collaborating with multiple entities, including the European Union and the African Development Bank. Zubairu emphasized the urgency of development, stating that the Lobito Corridor represents an economic corridor that enhances African integration and competitiveness.
The project will reduce travel time from Zambia’s Copperbelt to international markets from 45 days to just seven, while shifting freight to rail is projected to cut CO2 emissions by 300,000 tons annually. In addition to the greenfield railway, AFC is also advising the Lobito Atlantic Railway (LAR) consortium, which operates the existing Benguela railway across Angola and into the Democratic Republic of Congo.
Source: Railways Africa
