The Board of Directors of the African Development Bank Group has approved a $255 million loan from the African Development Fund and a $10 million grant from the Rome Process/Mattei Plan Financing Facility to support Zambia's participation in the Lobito Corridor development initiative. The Bank Group's support forms part of a coordinated effort with multilateral and bilateral partners to advance an integrated economic corridor approach.
The Lobito Corridor spans Southern and Central Africa, linking Angola, the Democratic Republic of the Congo and Zambia from the Port of Lobito, to the Copperbelt region. Through this first phase of financing, the Bank Group is helping to establish the critical foundations for a corridor model that connects transport infrastructure with trade facilitation, agriculture, energy, urban development and institutional capacity.
The Lobito Integrated Economic Corridor Development Project is expected to be transformative and catalytic for industrial development and regional trade. By linking Zambia's Copperbelt and other mineral-rich and agricultural regions to Angola's Atlantic Port of Lobito, the corridor will provide a more efficient export route, reduce logistics costs, strengthen supply-chain reliability and unlock new investment opportunities across Zambia and the wider Southern African region. The project's emphasis on women's empowerment and youth employment will also support inclusive growth, resilience and improved livelihoods.
"The Lobito Corridor is more than a transport investment; it is a platform for regional integration, industrialisation and economic transformation. This approval marks an important step in unlocking new opportunities for trade, investment and jobs across the region," said Mike Salawou, Director for the Infrastructure and Urban Development Department.
Under the project, which will see the development of a new railway line connecting Zambia to Angola and the Port of Lobito, approximately 550 km of railway infrastructure in Zambia will be constructed and 105 km of the Mwinilunga-Jimbe road will be upgraded. In addition, there will be trade facilitation measures, institutional support and capacity building. The Bank's financing will be implemented in phases. The current approval represents the first tranche under ADF-16, amounting to approximately $255 million, with additional resource mobilisation envisaged to reach up to $500 million in subsequent phases.
The operation will enhance access to capital through co-financing and private sector participation, create jobs and skills development and deliver climate-resilient infrastructure and value addition through integrated rail and road investments. It also supports the Bank's Regional Integration Strategic Framework and the Southern Africa Regional Integration Strategy Paper.
The project will help operationalise the Bank's corridor approach through a bankable, high-impact pilot corridor that can serve as a deal-making platform to crowd in private capital. It builds on the outcomes of the ongoing Bank-financed Lobito Corridor Trade Facilitation Project and supports the operationalisation of the Lobito Corridor Transit Transport Facilitation Agency.
The project is expected to create approximately 500 permanent jobs and 5,000 temporary jobs across construction, logistics, one-stop border post operations and professional services. At least 300 people will be trained in rail and road construction and maintenance, and 50 people in corridor management, logistics, climate safeguards, monitoring and evaluation, with particular attention to women and youth.
