African Development Bank and Africa Finance Corporation Partner with the US and EU to Advance Transport Infrastructure in Africa
The African Development Bank and the Africa Finance Corporation, in collaboration with the United States and the European Union, have expressed their support for Angola, the Democratic Republic of Congo, and Zambia in the development of the Lobito Corridor and the new Zambia-Lobito rail line.
This partnership was formalized through a seven-sided Memorandum of Understanding (MoU) signed on the sidelines of the Global Gateway Forum in Brussels, Belgium.
The MoU outlines the commitment of the signatories to collaborate across various sectors to unlock the full economic potential of the Corridor.
This builds upon the Lobito Corridor Transit Transport Facilitation Agency agreement, previously signed by the three African governments in January, and centers around substantial investments in establishing the Zambia-Lobito greenfield rail line.
This rail line will connect northwest Zambia to the Lobito Atlantic Railway and the port of Lobito, making it one of the most significant transport infrastructure developments in Africa, supported by the United States.
The new rail line will not only enhance regional trade and economic growth but also contribute to the broader vision of establishing a connected, open-access rail route from the Atlantic Ocean to the Indian Ocean.
This partnership, known as the Partnership for Global Infrastructure and Investment (PGI), leverages both Western and African capital and paves the way for additional investments in digital connectivity, agriculture value chains, green energy supply chains, rural health center electrification, and other transformative economic endeavors.
Representatives from the United States, the European Union, Angola, the Democratic Republic of the Congo, Zambia, the African Development Bank, and the Africa Finance Corporation participated in the signing of the MoU.
As an initiative under President Biden’s leadership, PGI seeks to provide credible infrastructure alternatives for low- and middle-income countries worldwide, aligning with international standards related to labor, the environment, and infrastructure quality.
Following the MoU, the Africa Finance Corporation (AFC) will collaborate with the involved parties to initiate feasibility and preparatory studies, with the aim of launching this extensive infrastructure project before the end of the year.
