IN a significant milestone for regional infrastructure development and economic growth, the African Development Bank (AfDB) and Africa Finance Corporation (AFC) have joined forces with the United States and the European Union to bolster Angola, the Democratic Republic of Congo, and Zambia in their efforts to develop the Lobito Corridor and the new Zambia-Lobito rail line. This historic Memorandum of Understanding (MoU) was signed by all seven parties on the margins of the Global Gateway Forum that ended in Brussels, Belgium, on Thursday.
The MoU outlines the collaborative intentions of the signatories to harness the full economic potential of the Lobito Corridor. It builds upon the Lobito Corridor Transit Transport Facilitation Agency agreement signed by the three African governments in January and is anchored by a visionary investment in developing the Zambia-Lobito greenfield rail line. This rail line, linking northwest Zambia to the Lobito Atlantic Railway and the port of Lobito, is set to become the most significant transport infrastructure project the United States has supported in Africa in a generation. Its completion will not only enhance regional trade and growth but also align with the shared vision of an open-access rail network connecting the Atlantic Ocean to the Indian Ocean.
This initiative demonstrates the practical application of the Partnership for Global Infrastructure and Investment (PGI). ‘Leveraging both Western and African capital, this strategic transport infrastructure will not only facilitate regional trade but also enable additional investments in digital connectivity, agriculture value chains, green energy supply chains, rural health centre electrification, and other transformative economic imperatives,’ the US State Department said in a statement on Thursday.
The signatories at the MoU signing ceremony included Deputy Assistant to the President for Energy and Investment Amos Hochstein representing the United States, Commissioner for International Partnerships Jutta Urpilainen representing the European Union, Minister of State for Economic Coordination José de Lima Massano representing Angola, Prime Minister Jean-Michel Lukonde representing the Democratic Republic of the Congo, Minister of Finance and National Planning Situmbeko Musokotwane representing Zambia, Vice President Solomon Quaynor representing the African Development Bank, and Board Member and Head of Financial Services Sanjeev Gupta representing the Africa Finance Corporation.
This landmark development is a signature initiative of President Biden’s PGI, which seeks to provide a credible alternative to low- and middle-income countries worldwide for meeting their infrastructure needs. The centrepiece of PGI’s flagship economic development corridor is the creation of a significant new multi-country transport infrastructure project that adheres to the highest international standards regarding labour, environment, and quality. Following the signing of the MoU, the Africa Finance Corporation (AFC) will collaborate with the involved parties to initiate the feasibility and preparatory studies essential for further advancing this extensive infrastructure project. These critical steps are aimed at commencing before the end of the year.