Angola, Zambia push Lobito Corridor rail project 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, as the project moves forward amid financing negotiations.
The corridor, which will link Zambia's Chingola region to Angola's Benguela railway line at Luacano, is expected to span over 530 km and serve as a key export route for copper and agricultural goods.
Speaking to Reuters on the sidelines of the U.S.-Africa summit being held in Luanda, Tayali expressed optimism about the multinational project, noting interest from the United States, the European Union, and regional stakeholders.
"We have a developer in the Africa Finance Corporation working through the financial issues, and things are looking very good," Tayali told Reuters. "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."
Angola's Minister of State for Economic Coordination José Massano said the government remains committed to facilitating investments like the Lobito Corridor through private sector negotiations 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 that Angola is advancing on a planned $500 million 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 per 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 hit a two-week low on Tuesday after Israel agreed to U.S. President Donald Trump's proposal for a ceasefire with Iran, alleviating worries over supply disruptions in the Middle East.
Brent crude futures were down $2.48, or 3.5%, at $69 a barrel by 0927 GMT. U.S. West Texas Intermediate crude fell $2.37, also 3.5%, to $66.14. Asked whether the country had ruled out an IMF programme, Massano said Angola remains open to dialogue with multilateral organizations, including the International Monetary Fund, to consolidate public finances if necessary.
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