Lobito Rail Project to Break Ground by 2026, Promises Economic Transformation

In a significant development for African infrastructure, the Zambia-Lobito rail project is set to commence by early 2026, as Africa Finance Corporation (AFC) CEO Samaila Zubairu announced at the Lobito Corridor Leaders Summit. This ambitious project, which has received pivotal support from US President Joe Biden, aims to revolutionize trade and connectivity across Southern Africa.

AFC has committed up to $500 million in financing for the greenfield rail project, with total project costs expected to exceed $1 billion. The rail line will connect the Port of Lobito on Angola’s Atlantic coast with Zambia, and plans are underway to extend this connectivity to Tanzania’s Port of Dar es Salaam, effectively linking the Atlantic and Indian Oceans.

In a series of strategic moves, AFC has secured a Memorandum of Understanding with KoBold Metals, ensuring a minimum of 300,000 tons of copper and related freight annually. Additionally, AFC has pledged $100 million to Kobaloni Energy for Zambia’s first battery-grade copper sulfate facility.

“This project is a testament to what can be achieved when Africa’s leadership unites with global partners,” Zubairu stated. “It’s about more than just railways; it’s about creating jobs, fostering partnerships, and driving a sustainable future for Africa.”

The Lobito Corridor is set to become a vital economic artery, reducing travel time for exports from Zambia’s Copperbelt to international markets from 45 days to just seven. This shift from road to rail is expected to cut CO2 emissions by 300,000 tons annually, highlighting Africa’s role in the global energy transition.

The project, led by the Lobito Corridor consortium with AFC as the lead developer, is supported by the US Government, the European Union, the African Development Bank, and the governments of Angola, the Democratic Republic of Congo, and Zambia. The rapid progress underscores the urgency and commitment of all parties involved.

As the world watches, the Lobito Corridor is poised to become a beacon of African integration and global competitiveness, paving the way for a new era of economic growth and sustainability.

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