Lobito Corridor Project Advances with Key Investments and Agreements at UN Assembly

New York, 25 September 2024 – At the sidelines of the 79th UN General Assembly, U.S. Secretary of State Antony Blinken led a high-level roundtable to push forward the Partnership for Global Infrastructure and Investment (PGI) Lobito Corridor project. The meeting gathered key stakeholders, including the foreign ministers of Angola, the Democratic Republic of Congo (DRC), Tanzania, and Zambia, alongside officials from the European Union, Italy, and leading African financial institutions. The event marked significant progress in developing a transcontinental transportation network connecting the Atlantic and Indian Oceans.

The Lobito Corridor, a flagship project under the PGI initiative, aims to improve infrastructure across Africa, enhancing regional connectivity and fostering economic growth. The discussions showcased advancements made since the signing of the seven-party Memorandum of Understanding (MoU) for infrastructure investment last year. The key highlight was the progress on the Zambia-Lobito rail line, part of Africa’s first open-access rail network, set to facilitate seamless trade across borders.

AFC, the lead developer of the rail project, announced the completion of a critical feasibility study and confirmed the signing of concession agreements with the governments of Zambia and Angola to develop and operate the railway. This new rail line, expected to begin construction in 2026, will link Zambia’s Copper Belt with Angola for the first time, unlocking significant economic potential in the region. “This project will spur economic integration and inclusive growth across borders,” noted the AFC CEO during the discussions.

In addition, the U.S. Trade and Development Agency (USTDA) revealed a $2 million grant for an Environmental and Social Impact Assessment (ESIA) for the rail project. This funding ensures that the Lobito Corridor will meet high international environmental standards, reinforcing the commitment to sustainable infrastructure development.

The roundtable also solidified plans for an upcoming summit during the U.S. President’s visit to Angola, where heads of state will outline a roadmap for further investments in the corridor. This project is a central part of the PGI’s efforts to build long-term partnerships in Africa, moving beyond traditional aid to focus on transformative infrastructure and economic development.

Since the U.S. pledged to support the Lobito Corridor at the African Leaders Summit less than 18 months ago, over $3 billion has been invested in developing the corridor. These funds span multiple sectors, including transportation, clean energy, digital access, agriculture, and health. By leveraging both G7 partners and African financial institutions, the project aims to create a model for investment in frontier markets, attracting private capital, boosting regional trade, and promoting sustainable development.

The Lobito Corridor is set to play a vital role in transforming the region’s infrastructure landscape. Once completed, it will serve as a crucial link for copper exports from Zambia and the DRC to global markets, while also stimulating other sectors along the corridor. By focusing on infrastructure that connects key African economies, the initiative aligns with the broader goal of fostering industrialisation and regional integration across the continent.