Zambia-Lobito Railway Line MoU Signed
By Chamwe Chowa Kaira
The Memoranda of Understanding on the Zambia-Lobito Railway Line was signed on Friday, the Zambian Ministry of Finance announced.
The signing took place at the inaugural Global Gateway Forum in Brussels, Belgium were the parties to the Zambia-Lobito Railway Line, the Lobito Corridor Development, and the Strategic Critical Minerals Value Chains signed the agreement.
The Africa Finance Corporation, African Development Bank, Angola, Democratic Republic of Congo, European Union, United States of America and Zambia – signed a memorandum of understanding for development of the Lobito Corridor and the new Zambia-Lobito railway line.
The parties to the Memorandum of Understanding on the Zambia-Lobito Railway Line and the Lobito Corridor Development Initiative who signed the agreement were, Amos Hochstein, Deputy Assistant to the President for Energy and Investment, United States of America; Dr Situmbeko Musokotwane, Minister of Finance and National Planning of Zambia; Jean –Michel Lukonde, Prime Minister, Democratic Republic of the Congo; Jose De Lima Massano, Minister of State for Economic Coordination, Angola; Jutta Urpilainen, Commissioner for International Partnerships, European Union; Sanjeev Gupta, Board Member, Africa Finance Corporation and Solomon Quanyor, Vice President – African Development Bank.
The Memorandum of Understanding outlines the intentions of the signatories to collaborate across multiple sectors to realise the full economic potential of the corridor, building on the Lobito Corridor Transit Transport Facilitation Agency agreement signed by the three neighbouring governments of Zambia, Angola and the Democratic Republic of Congo in January this year and anchored by historic envisioned investment in developing the Zambia-Lobito greenfield railway line.
Reflecting on the development, Musokotwane expressed Zambia’s gratitude that the new railway line, connecting North-Western Zambia to the Benguela railway line in Angola and ultimately to the port of Lobito, represents the most significant transport infrastructure that our development partners such as the United States, the European Union, Africa Finance Corporation and the African Development Bank will help to develop on the African continent. Once complete, there will be enhanced regional trade, growth, and advancement of the shared vision of connected and open-access railway from the Atlantic Ocean to the Indian Ocean.
This development is part of the Demonstrating the Partnership for Global Infrastructure and Investment (PGI), an initiative of US President Joe Biden. This is a strategic transport infrastructure unlocks regional trade and enables additional investments in digital connectivity, agriculture value chains, green energy supply chains and rural health center electrification, among other transformative economic imperatives.
Musokotwane said the Partnership for Global Infrastructure and Investment will offer a credible alternative to Angola, Democratic Republic of Congo and Zambia in meeting infrastructure needs for regional integration, development and improved trade.
He said the project will see the developing of a significant multi-country transport infrastructure project that follows the highest international standards regarding labor, environment and quality is the centerpiece of PGI’s flagship economic development corridor.
The Africa Finance Corporation will work with the parties to launch the feasibility and preparatory studies necessary to further prepare this extensive infrastructure project, a critical concrete action step anticipated before the end of 2023.
Musokotwane added that the MoU will guide the Zambian Government and the European Union in their quest to improve management of strategic and critical raw materials.
The agreement will enable Zambia to seize enormous opportunities from emerging developments such as green energy transition while the EU will benefit from having a secure sustainable raw materials value chain. The MoU also widens the Zambia and EU Cooperation in line with our mining reform objectives, to be articulated in the comprehensive strategy on critical raw materials.
Musokotwane said the EU investments in critical minerals value chains will help to stimulate exploration, mining and mineral processing, and result in mutually beneficial partnerships that contribute to inclusive economic growth.
“Our expectation is that investments from the EU in Zambia’s critical raw materials sector will also support local value addition.”
