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In a recent update regarding Lobito Corridor rail project, the East African country Tanzania officially decided to be a part of the ambitious Lobito Corridor project, a ground- breaking railway initiative that will connect 4 African nations. This information was revealed by the U.S. Secretary of State Antony Blinken during a recent ceremony.
This ambitious rail project now links Angola, the Democratic Republic of Congo (DRC), Zambia, and Tanzania, spanning from the Atlantic to the Indian Ocean.
This expansion project marks a major milestone for the Lobito Corridor. It extends the reach of the railway network, potentially setting up a trans- African rail line among African states. The mega project is expected to boost trade, economic growth, and regional integration across the African continent. Its developer, the African Finance Corporation (AFC) leads the development of the Zambia-Lobito railway.
Recently, a concession agreement was signed with both Angola’s and Zambia’s governments.
Project Factsheet
Name: Lobito corridor
Cost: $1billion-$2.3 billion
Size: Over 350 miles
Significance: Boost trade, economic growth, and regional integration across the African continent.
Participant countries: Zambia, Angola, the Democratic Republic of Congo, and Tanzania
This agreement covers the financing, construction, ownership, and operation of the rail project. Additionally, alongside Tanzania’s inclusion in the ambitious rail project, the U.S. Trade and the Development Agency also issued a $2 million grant to the AFC. This funding is expected to be utilized to support an environmental and social impact assessment for this upcoming mega rail. The study will entail analysing both air and water quality, as well as potential natural disasters and even potential climate risks.
The Lobito Corridor project entails construction of an 800-kilometre greenfield rail line. It will link the existing Angola’s Benguela rail line to Zambia’s existing railways. Additionally, this new railway route offers the shortest possible path for exports and imports between Zambia, the DRC, and Angola’s Port of Lobito.
Significance of Lobito Corridor
The economic benefits of this project are quite numerous. Estimates suggest it will generate almost $3 billion across Angola and Zambia. The initiative also promises to cut emissions by approximately 300,000 tons yearly.
Moreover, it will generate more than 1,250 jobs in both construction and operations sectors. The Lobito Corridor’s strategic importance extends beyond just economic gains. It provides efficient access to critical minerals needed for the global energy
transition. These resources are abundant in the DRC and Zambia’s Copperbelt region. Tanzania’s participation in this mega brings new opportunities to the project. It will open up access to the Indian Ocean, therefore boosting trade possibilities for all participant countries.
Why Tanzania Joined the Lobito Corridor
Just like the participant countries in this mega rail project,likewise, Tanzania also possesses numerous mineral deposits. This move is termed as very economically strategic as the development of the project in the country will provide a transport route for the country’s numerous minerals and eventually get exported therefore generating income for the country.
Tanzania is the fourth-largest gold miner in the African continent behind South Africa, Mali, and Ghana, and in the year 2010, it accounted for 2% of the world’s overall gold output. The country also contains huge reserves of natural gas that are being extracted. Additionally, just to note, Tanzanite is an exclusive product of the country.
Tanzania’s Lobito Corridor Initiative Impact on the Country
Tanzanian businesses will gain by acquiring improved access to markets in both Central and Southern Africa. This mega railway project also possesses geopolitical importance. It represents the very first major U.S. rail infrastructure investment in the African continent. As some may view it, it is an alternative to China’s Belt and Road Initiative.
The Lobito Corridor is part of the G-7 Partnership for Global Infrastructure and Investment. As the project gains momentum and progresses, it contains great potential to reshape African trade routes. It may also influence economic dynamics across the entire continent. The Lobito Corridor is an example of how infrastructure can drive regional integration. |
