Biden’s Angola Visit Boosts Zambia-Lobito Rail Project; AFC Leads $1 Billion Infrastructure Investment

AFC President Samaila Zubairu concluded, “This project is more than infrastructure—it’s about partnerships, sustainability, and building Africa’s future.”

The Zambia-Lobito Rail Project gained significant momentum during US President Joe Biden's visit to Angola, as the Africa Finance Corporation (AFC) announced its commitment as the lead developer. This transformative infrastructure initiative aims to link Angola's Lobito Port with Zambia's Copperbelt, extending regional connectivity to Tanzania’s Port of Dar es Salaam, thus bridging the Atlantic and Indian Oceans. Key Announcements and Commitments:

Speaking at the Lobito Corridor Leaders Summit, co-hosted by President Biden and Angola’s President João Lourenço, AFC President and CEO Samaila Zubairu revealed plans to break ground on the greenfield rail project by early 2026, mobilizing $500 million in financing. The total project financing surpasses $1 billion, underscoring its scale and significance.

Strategic Partnerships: AFC signed an MoU with KoBold Metals, securing a minimum freight of 300,000 tons of copper annually. It also committed $100 million to Kobaloni Energy for Zambia's first battery-grade copper sulfate facility.

Environmental Impact: The rail link is expected to cut travel time from the Copperbelt to global markets from 45 days to 7 days, while reducing carbon emissions by 300,000 tons annually.

Catalyzing Development: Beyond logistics, the corridor will bolster ecotourism, agribusiness, and energy transmission, aligning with Africa’s global energy transition goals.

AFC’s Role and Achievements

The AFC, as the lead developer, is collaborating with global partners including the US Government, European Union, African Development Bank, and the governments of Angola, Zambia, and the Democratic Republic of Congo (DRC). Key milestones include:

Concession Agreements: Signed with Angola and Zambia at the UN General Assembly (UNGA 79) in September 2024, enabling the construction of an 830 km greenfield rail line.

Environmental Assessment: Grant funding from the US Trade and Development Agency (USTDA) supports environmental and social impact assessments for the project.

Economic Corridor Vision: The Lobito Corridor is positioned as a lower-cost, lower-carbon gateway, driving integration and competitiveness in Africa.

Economic and Strategic Benefits

The Lobito Corridor will connect mining regions and agricultural hubs in Zambia and DRC with international markets through the Port of Lobito. By shifting freight from road to rail, the project will not only cut costs but also support Africa's battery minerals value chain, critical for global industries.

Global Energy Transition: The project aligns with decarbonization efforts, particularly in producing battery precursors for American and international markets.

Cross-Border Connectivity: Plans to link Zambia’s Copperbelt to Tanzania’s Indian Ocean port will further enhance regional trade and integration.

Future Outlook

The project’s rapid pace reflects Africa’s commitment to transformative development. With the AFC also serving as Financial Advisor for the Lobito Atlantic Railway consortium managing the Benguela Railway, the initiative marks a pivotal step toward economic integration and sustainable growth in East and Southern Africa.

AFC President Samaila Zubairu concluded, “This project is more than infrastructure—it’s about partnerships, sustainability, and building Africa’s future.”