Zambia Copper Mine Railway Received $1.3 Billion Financing Commitment

Africa Finance Corp. (AFC) and the African Development Bank each committed $500 million to build a railway corridor connecting Zambia's copper belt to global markets via the port of Lobito in Angola.

Sameh Shenouda, AFC's Executive Director and Chief Investment Officer, revealed at a recent conference in Nairobi, Kenya's capital, that Italy would also provide $320 million in funding for the project. As the lead developer and initiator of the project, the pan-African financial institution is spearheading the construction of the corridor.

The 830-kilometer railway is expected to require a total investment of up to $5 billion and plans to break ground within the year, with completion and commissioning targeted for 2030. "To achieve commercial feasibility for the project, we need an annual freight volume of approximately 2.5 million to 3 million mt. We have already secured shipping commitments of 1 million mt, with clear expectations to further increase to 5 million mt," Shenouda said.

The Lobito Corridor project consists of two major components: upgrading the existing railway line connecting the Atlantic port of Lobito to southern DRC, and constructing a new railway line extending to Zambia's Northwestern Province and Copperbelt Province.

The Zambian spur will be the country's largest new railway project since the 1970s, when China built a railway line running eastward from the copper ore region to Tanzania's Indian Ocean port. Shenouda said that nine engineering, procurement, and construction (EPC) contractors from different countries visited the Zambian railway project site two weeks ago. The companies will submit their bids in May, and bid evaluation is expected to be completed later this year.

"We plan to select the EPC general contractor in July or August and officially break ground before the end of the year or by January 2027 at the latest," Shenouda said.

Once completed, freight transit time will be reduced from the current 16 days to 7 days, and the project is expected to generate an economic boost of approximately $3 billion for Angola and Zambia.

(Wenhua Consolidated)