Zambia–Lobito Railway Project Nears Financial Close

The President of Zambia, Hakainde Hichilema, recently hosted a delegation from the Africa Finance Corporation (AFC) to discuss the progress of the Zambia–Lobito Railway Project. The AFC, led by its President and Chief Executive Officer, Samaila Zubairu, reviewed the project's development milestones in Lusaka. As the lead sponsor and developer, the AFC is driving the project to connect Chingola in Zambia's Copperbelt to Luacano in Angola, linking with the existing Benguela Railway and providing direct access to the Atlantic Ocean through the Port of Lobito.

The approximately 830-kilometre railway is a strategic component of the broader Lobito Corridor initiative, aiming to provide a direct Atlantic export route for Zambia's copper and critical minerals. The project also seeks to support agricultural exports, petroleum logistics, manufacturing, and regional trade. With several important development milestones achieved, the project has signed memoranda of understanding and letters of intent with prospective railway users covering approximately 2 million tonnes of freight a year.

In October 2026, the AFC announced preferred bidders for the Engineering, Procurement and Construction (EPC) contracts for the Angolan and Zambian sections, following an international competitive tender. The project's commercial strategy targets approximately 5 million tonnes of annual freight at steady state, comprising petroleum products, agricultural commodities, copper, cobalt, zinc, and other industrial cargo. Transit from the Copperbelt to the Port of Lobito is expected to take approximately seven days.

Discussions between President Hichilema and the AFC delegation focused on continued collaboration between the AFC and the Government of Zambia on the project's next steps. The meeting covered the railway's right of way and land for associated agricultural, petroleum, and freight-handling facilities. The parties also considered rail sector policy measures to support the corridor's long-term competitiveness, including integration with the Zambia Railways network and the Chingola–Ndola line.

President Hichilema reaffirmed the railway's importance to Zambia's economic development and regional integration. He stated that the Zambia–Lobito Railway is central to Zambia's vision of transforming into a competitive regional hub for trade, manufacturing, agriculture, and mineral value addition. By connecting productive sectors to international markets more efficiently, Zambia can reduce logistics costs, attract investment, and create jobs.

Samaila Zubairu, President and Chief Executive Officer of AFC, emphasized that every tonne that leaves Zambia unprocessed takes jobs away with it, and the Lobito railway aims to change that. Starting in Chingola, the railway provides Zambia with a seven-day route to the Atlantic, enabling the country to process, manufacture, and add value at home. The AFC continues to work with the Governments of Angola and Zambia, the European Union, the United States Government, the Government of Italy, and the African Development Bank to bring the project into construction.

The AFC is targeting financial close in 2027 and is working with partners, including Italian development finance institution CDP and Italian export credit agency SACE, to finalize the project. With preferred EPC bidders selected and strong interest from freight users, the project is poised to move forward, supporting Zambia's economic development and regional integration.

Key points

• The Zambia–Lobito Railway Project aims to provide a direct Atlantic export route for Zambia's copper and critical minerals.
• The project targets approximately 5 million tonnes of annual freight at steady state.
• The AFC is targeting financial close in 2027.