The Lobito Corridor is a railway project stretching from the Angolan port of Lobito on Africa’s Atlantic coast to the city of Kolwezi in the Democratic Republic of the Congo, which contains one of the largest mining deposits in the world. Just recently, Tanzania officially joined the Lobito Corridor project, a ground- breaking railway initiative that will connect 4 African nations. U.S. Secretary of State Antony Blinken announced this development during a recent ceremony.
The project now connects Angola, the Democratic Republic of Congo (DRC), Zambia, and Tanzania, spanning from the Atlantic to the Indian Ocean.
This expansion marks a significant milestone for the Lobito Corridor. It extends the reach of the railway network, potentially creating a trans- African rail line. The mega project aims to boost trade, economic growth, and regional integration across the African continent. The African Finance Corporation (AFC) leads the development of the Zambia-Lobito railway.
They recently signed a concession agreement with Angola and Zambia’s governments.
Project Factsheet
Name: Lobito corridor
Cost: $1billion-$2.3 billion
Size: Over 350 miles
Participant countries: Zambia, Angola, the Democratic Republic of Congo, and Tanzania
This agreement covers the financing, construction, ownership, and operation of the rail project. Additionally, alongside Tanzania’s inclusion in the project, the U.S. Trade
and Development Agency awarded a $2 million grant to the AFC. This funding provided is expected to support an environmental and social impact assessment for the upcoming mega rail project. The study will analyse both air and water quality, as well as potential natural disasters and climate risks.
The Lobito Corridor project involves building an 800-kilometer greenfield rail line. It will connect Angola’s Benguela rail line to the Zambia’s existing railways. However, this new railway route offers the shortest path for exports and imports between Zambia, the DRC, and Angola’s Port of Lobito.
Significance of Tanzania’s Lobito Corridor
The economic benefits of the project are indeed a lot. Estimates suggest it
will generate around $3 billion across Angola and Zambia. The initiative
also promises to cut emissions by around 300,000 tons annually.
Moreover, it will generate more than 1,250 jobs in both construction and operations. The Lobito Corridor’s strategic importance extends beyond
economic gains. It provides efficient access to critical minerals needed for the global energy
transition. These resources are abundant in the DRC and Zambia’s Copperbelt region. Tanzania’s participation in this mega brings new opportunities to the project. It will open up access to the Indian Ocean, therefore boosting trade possibilities for all participant countries.
Impact on Tanzania
Tanzanian businesses will gain improved access to markets in Central and Southern Africa. The railway project also holds geopolitical importance. It represents the first major U.S. rail infrastructure investment in Africa. Some view it as an alternative to China’s Belt and Road Initiative.
The Lobito Corridor is part of the G-7 Partnership for Global Infrastructure and
Investment. As the project progresses, it has the potential to reshape African trade routes. It may also influence economic dynamics across the continent. The Lobito Corridor exemplifies how infrastructure can drive regional integration.
Also read: The Lobito Corridor Railway Expansion Project
US$1.3 Billion Lobito Corridor Development Deal Signed by Angola
