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The Africa Finance Corporation (AFC) is seeking financial support from Zambia and Angola to kick-start construction of a proposed US$3 billion to US$5 billion railway linking Zambia’s copper mines to Angola’s Lobito port, according to Access Bank Group’s market commentary.
AFC President, Samaila Zubairu, said the corporation was pursuing initial viability gap funding from the two governments after some expected financial commitments from international partners failed to materialise.
“The 830-kilometre railway remained commercially viable, but required government support to close the initial financing gap,” Zubairu said.
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The railway is the most expensive component of the Lobito Corridor, a US-backed initiative designed to improve regional transport infrastructure and facilitate the movement of critical minerals to international markets.
The project is also intended to provide an alternative export route for copper and other minerals, reducing reliance on existing trade routes.
Despite the funding challenges, AFC has identified preferred bidders for the railway’s construction, including Italian firm Webuild and Brazilian company Odebrecht.
The proposed railway is expected to strengthen Zambia’s access to Angola’s Atlantic coast through the port of Lobito, providing an alternative route for mineral exports.
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