Why Lobito Corridor is key to Zambia’s economy —Govt

Zambia’s plans to increase agricultural production and exports will require alternative trade routes, with the Lobito Corridor expected to provide a shorter link to international markets, Permanent Secretary in the Ministry of Infrastructure, Housing and Urban Development Albert Malama has said.

Speaking during a courtesy call on the World Bank in Lusaka, Malama said the corridor was strategically important to the Grow Zambia Agenda because it would strengthen connectivity, facilitate trade and support the development of export-oriented value chains.

He said Zambia’s target of producing 10 million tonnes of maize, three million tonnes of soya beans, one million tonnes of wheat, one million tonnes of sugar and US$1 billion worth of beef would require efficient access to regional and global markets.

“The Lobito Corridor will provide an alternative and shorter route to the sea, further cementing Zambia’s strategic geographical location and logistics capacity in line with our national goal of becoming a trade and logistics hub in the region,” Malama said.

He said Government attached great importance to the Lobito Corridor Development Project and valued the World Bank Group’s support towards its implementation.

Malama said the Bank’s assistance in improving connectivity and trade facilitation, developing agricultural value chains and promoting green, resilient and inclusive cities would contribute to Zambia’s economic diversification efforts.

He said the project also provided an opportunity for Zambia to strengthen its position within regional and international trade networks.

Malama said Government appreciated the World Bank’s leadership in the Lobito Corridor Ministerial Roundtable and the Engine Room Mechanism, which brings together Zambia, Angola and the Democratic Republic of Congo (DRC), alongside development and financing partners.

The partners include the African Development Bank, Africa Finance Corporation, European Union and the United States Government.

He said the Engine Room Mechanism would help coordinate efforts among the participating countries and partners to advance the corridor’s development.

Malama said successful implementation of the project would create new opportunities for production, trade and investment, particularly through agricultural value chains.

He said the corridor was expected to provide Zambia with improved access to the Atlantic Ocean while supporting the country’s long-term ambition of becoming a regional trade and logistics hub.

Meanwhile, Zambia has requested the World Bank to support the development and financing of a comprehensive Zambia Railways rehabilitation programme.

Ministry of Transport and Logistics Permanent Secretary, Fredrick Mwalusaka, said Government would like to place financing for the rehabilitation and modernisation of Zambia Railways Limited at the centre of its discussions with the World Bank.

Speaking during a courtesy call on him by a World Bank team in Lusaka on Friday, Mwalusaka said Zambia Railways provides the backbone connecting the country’s mining, agricultural, industrial and commercial centres to regional railway corridors.

Mwalusaka highlighted that significant sections of the network require rehabilitation, modernisation and capacity enhancement.

He warned that without addressing these constraints, Zambia risks developing new railway infrastructure that is unable to operate at its full potential because the existing network cannot efficiently receive, process and move additional traffic.

“This should include, among other areas rehabilitation of priority sections of the existing rail network, track renewal and upgrading, bridges, culverts and other railway structures, and signalling and telecommunications,” Mwalusaka stated.

He said the programme should additionally cover stations, yards and intermodal facilities; locomotives and rolling stock; maintenance equipment and facilities; safety systems; border and interchange infrastructure; digitalisation of railway operations; climate-resilient railway infrastructure; and institutional and technical capacity strengthening.

He said the objective should be to create a modern, reliable and commercially viable Zambia Railways network capable of supporting the new railway concessions and expected growth in corridor traffic.

“The Government of the Republic of Zambia greatly values its partnership with the World Bank in supporting sustainable economic development, regional integration and infrastructure development,” Mwalusaka said.

He said Zambia’s strategic objective was to transform the country from a landlocked country into a land-linked economic hub by connecting production centres to regional markets and ports on the Atlantic and Indian Oceans through efficient and competitive transport corridors.

Mwalusaka added that the Lobito Corridor was central to this ambition, but Zambia’s land-linkedness would not be achieved through new international railway connections alone and would depend fundamentally on the condition and capacity of the domestic Zambia Railways network.

He said the new railway concessions and the Lobito Corridor would only deliver their intended economic benefits if the existing Zambia Railways network was rehabilitated, modernised and integrated with them.

“The rehabilitation and modernisation of Zambia Railways should therefore be regarded as a strategic enabling investment for the entire Lobito Corridor and Zambia’s wider land-linkedness agenda, rather than as a stand-alone railway project,” Mwalusaka said.

He further said the Lobito Corridor provides Zambia with an important alternative route to the Atlantic Ocean through the Democratic Republic of Congo and Angola.

Mwalusaka noted that the corridor had the potential to reduce the cost and time of moving Zambia’s exports and imports, provide greater choice and resilience in accessing international markets, and support increased copper production and exports.

He also said it had the potential to facilitate the movement of agricultural products and other commodities, stimulate manufacturing and value addition along the corridor, strengthen Zambia’s regional economic integration, and position Zambia as a regional logistics and transit hub.

“However, the benefits of the corridor will not be realised if Zambia’s internal railway system becomes the bottleneck,” Mwalusaka said.

He stated that new railway infrastructure should connect efficiently into the existing national network, which provides the essential link between production centres, industrial areas, mining regions, dry ports and border crossings.

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