LAGOS – The Africa Finance Corporation (AFC) will initiate debt and equity fundraising for Zambia’s new rail line in the third quarter of 2026, targeting financial close by late 2027.
Senior Director Amadou Wadda announced the timeline Friday at an infrastructure summit in Nairobi. The project aims to begin construction immediately after securing funds, with completion slated for 2030.
The 830-kilometer greenfield rail project is estimated to cost between $3 billion and $5 billion. It will connect Zambia’s Copperbelt to the existing Benguela line leading to Angola’s Atlantic coast.
Contractor proposals for the Zambian segment are due by the end of May. Feasibility studies are already complete, and the AFC has secured preliminary agreements to transport 1 million tonnes of cargo.
The rail line is a centerpiece of the US-backed Lobito Corridor. This strategic initiative seeks to secure Western supply chains for critical minerals like copper and cobalt, essential for the green energy transition.
By shifting freight from road to rail, the corridor is expected to reduce transport times from 45 days to under 15. It will also cut CO2 emissions by 300,000 tons annually.
The project signals a shift in African infrastructure financing. The AFC’s 2026 report highlights that domestic capital pools now exceed $2 trillion, surpassing external flows for the first time in a decade.
This Western-aligned corridor competes directly with Chinese-funded infrastructure, including the nearby Tazara railway. The U.S. and European Union have pledged significant financial and technical support to ensure the project’s success.
Zambia and Angola have already signed concession agreements for the project’s operation. The line is projected to generate $3 billion in economic benefits and create over 1,250 jobs across the region.
