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Home in Southern Africa Angola

Angola and Zambia Advance Lobito Corridor in Landmark Infrastructure Pact

by SAT Reporter
April 24, 2025
in Angola, in Southern Africa
0
Angola and Zambia Advance Lobito Corridor in Landmark Infrastructure Pact

Angolan minister of transport, Ricardo Viegas D'Abreu (left) and Zambian minister of transport and logistics, Frank Tayali, signed the agreement. Photo Credit: Angola Ministry of Transport

The governments of Angola and Zambia have renewed their commitment to regional connectivity with the signing of a bilateral agreement to support the financing, construction, and operation of the proposed 830km Zambia–Lobito Railway, an ambitious undertaking poised to reshape the economic geography of southern and central Africa.

The agreement, signed in Lusaka by Angola’s Minister of Transport, Ricardo Viegas D’Abreu, and his Zambian counterpart, Frank Tayali, during the Land-Linked Zambia Conference, marks a significant milestone in the development of the Lobito Corridor. It underpins cross-border infrastructure collaboration and reinforces ongoing efforts to integrate regional supply chains and export routes.

The 1067mm-gauge railway will extend the Benguela Railway, currently terminating at Luacano in eastern Angola, to Chingola in Zambia’s Copperbelt province. This expansion will link Zambia Railways with the Angolan system, ultimately enabling freight movement from the Atlantic port of Lobito to the Indian Ocean via Tanzania’s TAZARA railway line.

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This multimodal corridor, which will also benefit the Democratic Republic of Congo (DRC), is being hailed by regional stakeholders as a “corridor of development”, expected to stimulate intra-African trade, enhance mineral export capacity, and catalyse the industrialisation of landlocked economies.

The Africa Finance Corporation (AFC) has been designated the lead project developer, following a trilateral concession agreement signed in September 2024 with both Angola and Zambia. The AFC has committed an initial US$500 million to the Zambia–Lobito Rail project, with overall investment anticipated to surpass US$1 billion. Construction is tentatively scheduled to commence in 2026, subject to the completion of requisite feasibility and environmental assessments.

In parallel, a major upgrade of the existing 1,289km Benguela Railway to Luau on Angola’s eastern frontier is underway. The project has attracted substantial external backing, including a US$553 million direct loan from the US International Development Finance Corporation to Lobito Atlantic Railway, a private consortium spearheading the operational framework.

These investments form part of the broader commitment by the United States to develop infrastructure along the Lobito Corridor. Under the Partnership for Global Infrastructure Investment (PGII), the administration of former President Joe Biden pledged more than US$560 million to support rail, energy, and logistics developments in the region.

During a site visit in early April 2025, James Storey, the US chargé d’affaires and acting ambassador to Angola, reaffirmed Washington’s support for the corridor. “US investment in the Lobito Corridor is 100% committed,” he stated, underscoring continuity of American interest under the current US administration. Storey was joined by representatives from G7 member states and the European Union, whose diplomatic presence further highlights the project’s strategic importance in global infrastructure diplomacy.

Viewed as a cornerstone of PGII’s Africa portfolio, the Lobito Corridor reflects a concerted shift toward more equitable and sustainable development financing for the continent. For Zambia, Angola and their neighbours, the corridor promises more than logistical efficiency — it offers a gateway to economic diversification and a platform for geopolitical realignment within a rapidly transforming global economy.

Tags: Africa Finance CorporationAfrican infrastructureAngolaBenguela Railwayinfrastructure investmentLobito Corridormineral exportsPGIIRegional IntegrationSouthern AfricaTAZARAtransport corridorUS International Development Finance CorporationZambiaZambia–Lobito Railway
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