Zambia-Lobito Railway Moves Toward Financial Close Expected in 2027

Zambian President Hakainde Hichilema received a delegation from Africa Finance Corporation (AFC) led by its President and Chief Executive Officer, Samaila Zubairu, to review progress on the Zambia-Lobito Railway Project. AFC, the project's lead sponsor and developer, aims to reach financial close on the project in 2027.

The railway will span approximately 830 kilometers, connecting Chingola, in Zambia's Copperbelt, with Luacano, in Angola, where it will link up with the existing Benguela railway to provide direct access to the Atlantic Ocean via the Port of Lobito. Transit time from the Copperbelt to the port is estimated at around seven days.

Last month AFC announced the preferred bidders for the engineering, procurement and construction (EPC) contracts for the Angolan and Zambian sections, following an international competitive tender. The project has also signed memoranda of understanding and letters of intent with prospective rail users representing a combined volume of close to two million tonnes of cargo per year, as part of a commercial strategy targeting around five million tonnes per year at steady state, including petroleum products, agricultural commodities, copper, cobalt, zinc and other industrial cargoes.

Hichilema stated that the Zambia-Lobito railway is central to transforming Zambia into a competitive regional hub for trade, manufacturing, agriculture and mineral value addition, noting that linking productive sectors to international markets will help lower logistics costs, attract investment and create jobs. For her part, Zubairu said that with the preferred EPC bidders now selected and strong interest from cargo users, AFC is working together with the governments of Zambia and Angola, the African Development Bank, the government of Italy and other partners to reach financial close.