Angola, Zambia push Lobito Corridor rail project as financing talks advance
LUANDA, June 24 (Reuters) - 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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
4 hours ago
- Reuters
US envoy plays down Africa tariff, visa concerns, reaffirms Lobito rail commitment
LUANDA, June 24 (Reuters) - The top U.S. diplomat for Africa on Tuesday dismissed allegations of unfair U.S. trade practices and said that funding delays would not derail a key railway project connecting Angola, Zambia and the Democratic Republic of Congo. African Union officials on Monday questioned how Africa could deepen trade ties with the United States under what they called "abusive" tariff proposals and tightening visa conditions largely targeting travellers from Africa. "There is no visitation ban," Ambassador Troy Fitrell said during a press conference at the U.S.-Africa Business Summit in Luanda. He said that U.S. consulates continue issuing visas regularly, although some now come with shorter validity periods due to concerns over overstays. Several African business and political leaders have raised concerns about a sharp drop in visa approvals, particularly for travellers from West Africa, since late 2023. Washington's tariff plans have also added to cooling diplomatic ties with African countries, as some economies — including Lesotho and Madagascar — warned that even a baseline 10% levy could threaten critical exports such as apparel and minerals. But Fitrell said that the proposed U.S. import tariffs were not yet implemented, and negotiations were ongoing to create a more reciprocal trading environment, including through the renewal of the African Growth and Opportunity Act (AGOA). The initiative grants qualifying African nations duty-free access to the U.S. market and is due to expire in September. Fitrell also reaffirmed his country's commitment to the Lobito Corridor railway project, which links Angola's coast to copper-rich Zambia and the Democratic Republic of Congo. "It's not at risk," he said of the initiative, describing it as a "win-win" for U.S. investors and African economies, and underscoring its significance for regional integration. The Trump administration has axed swaths of U.S. foreign aid for Africa, as part of a plan to curb spending it considers wasteful. Angolan President João Lourenço, addressing more than 2,000 government and business leaders at the summit, said U.S. companies should shift from aid to investment-driven partnerships. "It is time to replace the logic of aid with the logic of investment and trade," Lourenço said, urging diversification into sectors such as automotive manufacturing, shipbuilding, tourism, cement, and steel production.
Reuters
10 hours ago
- Reuters
Angola, Zambia push Lobito Corridor rail project as financing talks advance
LUANDA, June 24 (Reuters) - 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.
Reuters
a day ago
- Reuters
First Quantum Minerals reports fatality at Zambia copper mine
June 23 (Reuters) - First Quantum Minerals ( opens new tab said on Monday an employee working at the company's Trident project in Zambia passed away following an incident involving a dump truck. The Canadian miner said the incident occurred at a pit at the Sentinel copper mine, adding that local authorities had been notified about the accident. The company said it had temporarily suspended operations in the area of the accident and will resume them once it is safe to do so.
