Zambia, Angola push Lobito Corridor as financing talks advance
LUANDA — Zambia hopes to start work on the Lobito Corridor railway connecting its copper belt to Angola’s Atlantic coast by the third quarter of 2026, transport minister Frank Tayali said
Financing talks are under way for the project, which will link Zambia’s Chingola region to Angola’s Benguela railway line at Luacano. The corridor is expected to span more than 530km and serve as an export route for copper and agricultural goods.
Speaking on the sidelines of the US-Africa summit in Luanda, Tayali said the project had received interest from the US, the EU, and regional stakeholders.
“We have a developer in the Africa Finance Corporation working through the financial issues, and things are looking very good,” Tayali said. “This is something monumental, and we have a lot of confidence in its potential to address global food insecurity and unlock Africa’s arid land for agriculture.”
José Massano, Angola’s economic co-ordination minister, said the government remains committed to facilitating investments such as the Lobito Corridor through negotiations with the private sector, but ruled out direct government funding for the project. Talks have focused on concession contract clauses, including potential guarantees sought by financiers.
“We may have one or two clauses adjusted to facilitate the relationship between operators and financiers,” Massano said. “These processes take time, but the firm commitment is there to make it happen.”
Massano also confirmed Angola is advancing on a planned $500m World Bank funding, with requirements expected to be fulfilled by the end of the year.
On the fiscal front, Massano addressed Angola’s budgetary outlook amid volatile oil prices. Speaking at the summit on Monday, he noted that oil prices above $70 a barrel — aligned with Angola’s 2025 budget forecast — had offered temporary relief for implementing economic and social programmes.
However, oil prices fell sharply on Tuesday casting uncertainty over Angola’s fiscal projections. Oil prices extended losses to a two-week low on Tuesday after Israel agreed to US President Donald Trump’s proposal for a ceasefire with Iran, alleviating worries about supply disruptions in the Middle East.
Brent crude futures were down 4.87%, at $68 a barrel at 3.34pm SA time. US West Texas Intermediate crude was down 4.79% at $65.42. Asked whether the country had ruled out an IMF programme, Massano said Angola remained open to dialogue with multilateral organisations, including the IM Fund, to consolidate public finances if necessary.
Reuters