An alternative route to international markets is moving closer to becoming a reality for Zambia, with the proposed Zambia – Lobito Railway advancing towards financial close following the selection of preferred construction bidders and freight-user commitments covering approximately 2 million tonnes annually. Beyond improving copper export logistics, the project is being positioned as a strategic investment in the country’s industrial capacity, agricultural trade and regional economic integration.
The 830km railway will connect Chingola in Zambia’s Copperbelt to Luacano in Angola, where it will link with the existing Benguela Railway and provide access to the Atlantic Ocean through the Port of Lobito. Developed by Africa Finance Corporation (AFC), which is the project’s lead sponsor and developer, the route forms a key component of the wider Lobito Corridor initiative.
Progress was reviewed during a meeting in Lusaka between President Hakainde Hichilema and an AFC delegation led by its President and Chief Executive Officer, Samaila Zubairu. Discussions focused on the project’s development milestones and the remaining requirements for advancing towards construction. AFC announced last month that preferred bidders had been selected for the engineering, procurement and construction contracts covering the Angolan and Zambian sections, following an international competitive tender. The project has also secured memoranda of understanding and letters of intent from prospective railway users covering approximately 2 million tonnes of annual freight.
The commercial ambition extends beyond the movement of copper and critical minerals. At steady state, the railway is targeting approximately 5 million tonnes of annual freight including 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. That connectivity could have significant implications for mining companies seeking more efficient export routes, while creating opportunities for agricultural producers, manufacturers and petroleum suppliers to access regional and international markets. The project’s broader economic proposition rests on using transport infrastructure to support investment and productive activity across multiple sectors.
Hichilema reaffirmed the railway’s importance to Zambia’s economic development and regional integration. He noted, “The Zambia – Lobito Railway is central to our vision of transforming Zambia into a competitive regional hub for trade, manufacturing, agriculture and mineral value addition. By connecting our productive sectors to international markets more efficiently, we can reduce logistics costs, attract investment and create jobs. We welcome AFC’s progress and will continue working closely together to advance this strategic project.”
The railway’s significance lies in its potential to influence where economic value is created, particularly within Zambia’s mineral sector. The institution has placed domestic processing and manufacturing at the centre of its argument for the project. “Every tonne that leaves Zambia unprocessed takes jobs away with it. This railway changes that. Starting in Chingola, it gives Zambia a seven-day route to the Atlantic and every reason to process, manufacture and add value at home. With preferred EPC bidders selected and strong interest from freight users, we are now working with the Governments of Zambia and Angola, the African Development Bank, the Government of Italy and our other partners to reach financial close. We are building a railway. Zambia will build an economy on it,” said Zubairu.
Several issues remain central to the project’s progression. Discussions between AFC and the Zambian government include securing the railway’s right of way and land for associated agricultural, petroleum and freight-handling facilities. Rail sector policy measures will also be important, particularly integration with the Zambia Railways network and the Chingola–Ndola line. AFC is targeting financial close in 2027 and continues to work with the governments of Zambia and Angola, the European Union, the United States Government, the Government of Italy and the African Development Bank. Italian development finance institution CDP and export credit agency SACE are also among the project’s partners.
