The rail race for Africa is on. RailFreight.com wrote a story about the renewed “scramble for Africa” in October. Now, a new chapter is opening. The EU and Zambia signed a multimillion euro agreement for a broad investment in the crucial Lobito Corridor.
The investment aims to improve the efficiency and competitiveness of Zambia Railways, but goes beyond the performance of the rail operator as well. Investments in water, (renewable) energy agriculture, access to financing, mining cooperations, education and governance in the Lobito Corridor regions should provide a boost to the economy. Zambian news outlet ZNBC Today calls the investment “holistic” in its approach.
“By reducing freight transit time from Zambia and DRC to the sea from over a month to just one week, the Lobito Corridor is transforming how goods move across central and southern Africa”, the European Commission wrote about the corridor earlier. “It is opening markets for farmers, small businesses and industries while creating new jobs and lowering carbon emissions.”
Critical raw materials
European Commissioner for International Partnerships, Jozef Síkela, visited Zambia from 10 to 12 November to deepen the EU-Zambia partnership and promote industrial and infrastructure development along the Lobito Corridor. Síkela also discussed “cooperation on critical raw materials”, which is what much of the geopolitical rail competition in Africa is about.
Ahead of the visit, the European Commission said that the agreement would cover an investment of 116 million euros. ZNBC Today has reported that a total investment of 200 million euros was agreed upon.
