AFC announces preferred EPC contractors for Zambia Lobito railway

**Staff Writer **

Africa Finance Corporation (AFC), lead sponsor and developer of the Zambia Lobito Railway Project, has selected the preferred bidders for the Engineering, Procurement and Construction (EPC) contracts for the 830-kilometre greenfield railway, following a competitive international tender process.

The consortium comprising Webuild S.p.A., Mota-Engil and IC İçtaş Construction has been selected as the Preferred Bidder for the Zambian section, while the consortium comprising Mota-Engil and Odebrecht Engineering and Construction has been selected as the Preferred Bidder for the Angolan section of the project.

Contract negotiations will begin in November 2026, with the aim of concluding EPC agreements within 8 to 12 weeks, subject to satisfactory technical, commercial and legal negotiations.

The Zambia Lobito Railway Project is expected to unlock billions of dollars in economic value through new opportunities for trade and industrialisation along the corridor connecting Zambia to Angola’s Atlantic coast, facilitating value addition to the region’s strategic minerals, including copper and cobalt, as well as agricultural products.

By reducing logistics costs and improving access to global markets, the railway will strengthen regional integration and enable African economies to process their resources locally.

The project is being developed by AFC through the Trans African Rail Company FZCO (TARC), the project holding company, and the project companies, Zambia Lobito Railway Limited and Zambia Lobito Railway S.A.

The company believes that if the United States investment extends to the Tanzanian coast, it would further dent Walvis Bay’s competitiveness for hinterland cargo.

Samaila Zubairu, President and CEO of Africa Finance Corporation, said: “Africa’s growing market needs infrastructure that connects our resources to production, our producers to consumers, and our people to opportunity.”

The announcement follows significant progress since the signing of a Memorandum of Understanding in October 2023 involving the governments of Angola and Zambia, the European Union, the United States Government, the Government of Italy and the African Development Bank.

Subsequent milestones include the completion of feasibility and technical studies, the signing of concession agreements in 2024 and intergovernmental agreements in 2025, and the completion of preliminary engineering designs.

The Lobito Corridor is a flagship project under Italy’s Mattei Plan for Africa, a government initiative to strengthen investment and economic partnerships with African countries.

This includes a €250 million financing facility from Italian development finance institution CDP, backed by Italian export credit agency SACE, to support Italian participation in infrastructure projects, including the railway.

The Namibian Ports Authority (Namport) has in the recent past said that it believes that the port of Lobito in Angola is a significant regional competitor due to its strategic location and infrastructure investments.

The company believes that as an alternative gateway for landlocked countries such as the DRC and Zambia, the port has grown in recent years and has attracted cargo traditionally routed through the port of Walvis Bay.

Namport believes that Lobito’s strategic location and infrastructure improvements could potentially divert trade flows away from Walvis Bay.

Namport said Lobito’s increasing prominence may shape market perceptions, making it a more attractive option for cargo owners and shipping lines.