Africa Finance Corporation (AFC), Lead Sponsor and Developer of the Zambia Lobito Railway Project, has selected the preferred bidders for the Engineering, Procurement and Construction (EPC) contracts for the 830-kilometre greenfield railway. This selection followed a competitive international tender process.
Which Companies have been Selected for Zambian Section?
The consortium comprising Webuild S.p.A., Mota-Engil and IC İçtaş Construction has been selected as the Preferred Bidder for the Zambian section.
Contract Negotiations Commencement Date
Contract negotiations will start in November 2026, with the aim of concluding EPC agreements within 8 to 12 weeks. It will be subject to satisfactory technical, commercial and legal negotiations.
Significance of Zambia Lobito Railway Project
The Zambia Lobito Railway Project will unlock billions of dollars in economic value. This will be achieved through new opportunities for trade and industrialisation along the corridor connecting Zambia to Angola’s Atlantic coast. Moreover, this move will facilitate value addition to the region’s strategic minerals, including copper and cobalt, as well as agricultural products.
By reducing logistics costs and improving access to global markets, the railway will strengthen regional integration. Additionally, it will enable African economies to process their resources locally.
Developers
The project is being developed by AFC via the Trans African Rail Company FZCO (TARC), the project holding company. Other project companies like Zambia Lobito Railway Limited and Zambia Lobito Railway S.A. are also part of the development team.
Samaila Zubairu, President and CEO of Africa Finance Corporation, said: “Africa’s growing market needs infrastructure that connects our resources to production, our producers to consumers, and our people to opportunity. The Zambia Lobito Railway will help build competitive battery mineral and agricultural value chains, anchoring new industrial cities and creating jobs along the corridor. Selecting preferred EPC bidders brings us closer to delivery. Working with our partners, we are building the foundations for African economies to produce more, trade more and retain more of the value they create.”
The announcement follows significant progress since the signing of a Memorandum of Understanding in October 2023. The signing involved the governments of Angola and Zambia, the European Union, the United States Government, the Government of Italy and the African Development Bank. Subsequent milestones include the completion of feasibility and technical studies, the signing of concession agreements in 2024 and intergovernmental agreements in 2025, and the completion of preliminary engineering designs.
Italy’s Involvement in the Project
Furthermore, the Lobito Corridor is a flagship project under Italy’s Mattei Plan for Africa. Mattei Plan is a government initiative to strengthen investment and economic partnerships with African countries. This includes a €250 million financing facility from Italian development finance institution CDP, backed by Italian export credit agency SACE, to support Italian participation in infrastructure projects, including the railway.
Also, throughout this process, AFC has worked closely with the governments of Angola and Zambia to coordinate key approvals, align priorities and advance the project towards implementation.
AFC and its partners have also advanced the Environmental and Social Impact Assessments (ESIAs) and Resettlement Action Plans (RAPs), alongside preparations for the competitive EPC tender process.
The selection marks a significant milestone towards delivering the strategic railway corridor connecting Zambia to Angola’s Atlantic coast through the Port of Lobito. The Lobito Corridor Project is expected to transform regional connectivity and reduce logistics costs. Moreover, it will facilitate mineral and agricultural exports, and unlock new opportunities for industrialisation and regional trade.
Lastly, AFC remains committed to advancing this transformative infrastructure investment alongside. AFC aims to achieve this alongside its partners and mobilise capital to accelerate the project’s implementation.
Project Factsheet
Project Name: Zambia Lobito Railway Project
Scope: 830-kilometre greenfield rail line connecting Zambia to Angola’s Atlantic coast via the Port of Lobito.
Lead Sponsor and Developer: Africa Finance Corporation (AFC).
Development Entities: Trans African Rail Company FZCO (TARC – Project Holding Co.), Zambia Lobito Railway Limited, and Zambia Lobito Railway S.A.
Preferred EPC Bidders
- Zambian Section: Consortium of Webuild S.p.A., Mota-Engil, and IC İçtaş Construction.
- Angolan Section: Consortium of Mota-Engil and Odebrecht Engineering and Construction.
Key Timelines and Next Steps
- Contract Negotiations Start: November 2026.
- Target EPC Signing: 8 to 12 weeks following negotiations (subject to final technical, legal, and commercial terms).
Economic and Strategic Impact
- Resource Export and Processing: Accelerates trade for critical minerals (copper, cobalt) and agricultural produce.
- Local Value Addition: Enables local mineral processing and battery value-chain development along the corridor.
- Logistics: Significantly cuts transport costs and speeds up access to global export markets via the Atlantic.
Key Partners and Milestones
- Core Steering Group: Governments of Angola and Zambia, AFC, EU, US Government, Government of Italy, and African Development Bank (MOU signed Oct 2023).
- Completed Milestones: Feasibility and technical studies, 2024 concession agreements, 2025 intergovernmental agreements, preliminary engineering designs, and ongoing ESIAs/RAPs.
- Italian Mattei Plan: Supported by a €250 million CDP financing facility (backed by SACE) to boost Italian infrastructure participation.
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