The African Development Bank (AfDB) Group has approved US$265 million in financing to support Zambia’s participation in the Lobito Economic Corridor, a major regional infrastructure project expected to boost trade, industrialization and economic growth.
The financing package comprises a US$255 million loan from the African Development Fund and a US$10 million grant from the Rome Process/Mattei Plan Financing Facility.
According to the AfDB, the funding forms part of a broader partnership with multilateral and bilateral development partners to establish an integrated economic corridor linking transport infrastructure with trade, agriculture, energy, urban development and institutional capacity.
The Lobito Corridor connects Angola, the Democratic Republic of the Congo and Zambia, providing a direct route from Zambia’s Copperbelt and other productive regions to Angola’s Atlantic Port of Lobito.
The Bank said the project is expected to reduce transport costs, improve supply chain efficiency and create new opportunities for investment, regional trade and industrial development across Southern and Central Africa.
AfDB Director for Infrastructure and Urban Development Mike Salawou described the corridor as more than a transport project.
“The Lobito Corridor is more than a transport investment; it is a platform for regional integration, industrialization and economic transformation. This approval marks an important step in unlocking new opportunities for trade, investment and jobs across the region,” he said.
Under the first phase of the project, Zambia will construct approximately 550 kilometers of new railway linking the country to Angola and the Port of Lobito. The project also includes the upgrading of 105 kilometers of the Mwinilunga–Jimbe Road, alongside trade facilitation measures, institutional support and capacity-building initiatives.
The AfDB said the current financing represents the first tranche under the African Development Fund’s sixteenth replenishment, with additional resource mobilization expected to increase the Bank’s total support for the project to up to US$500 million in subsequent phases.
The project is expected to attract private sector investment, improve access to capital and promote climate-resilient infrastructure while supporting value addition through integrated rail and road transport systems.
The Bank also said the initiative will strengthen regional integration and build on existing investments under the Lobito Corridor Trade Facilitation Project, while supporting the operationalization of the Lobito Corridor Transit Transport Facilitation Agency.
Once implemented, the project is expected to create approximately 500 permanent jobs and 5,000 temporary jobs in construction, logistics, border operations and professional services.
In addition, at least 300 people will receive training in rail and road construction and maintenance, while 50 people will be trained in corridor management, logistics, climate safeguards, monitoring and evaluation, with a focus on increasing opportunities for women and young people.
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