Preferred bidders selected for up to $5B Zambia-Angola railway

The planned 830 km Zambia-Lobito railway has moved closer to construction after Africa Finance Corporation, the project's lead sponsor and developer, selected preferred bidders on 27 October for the engineering, procurement and construction of its Zambian and Angolan sections.

The greenfield railway is expected to cost between $3 billion and $5 billion and will create a new rail connection between Zambia's Copperbelt and Angola's existing Benguela railway, providing a direct route towards the Atlantic coast and the Port of Lobito.

Around 550 km of new railway will be constructed in Zambia, beginning near Chingola in the country's major copper-producing region and extending towards the Angolan border. A further 279 km will continue through Angola to Luacano, where the new line joins the existing network leading west to Lobito.

A consortium comprising Webuild, Mota-Engil and IC İçtaş Construction has been selected as preferred bidder for the Zambian section, designated Lot 1B, with Webuild holding 40% and its two partners 30% each. A second consortium involving Mota-Engil and Odebrecht Engineering and Construction has been selected for the Angolan works, Lot 1A, following an international competitive procurement process. Mota-Engil is the only company in both groups, and is also a shareholder in the concessionaire Lobito Atlantic Railway alongside Trafigura and Vecturis.

The selections do not yet represent final construction contracts. Contract negotiations are scheduled to begin in November, with engineering, procurement and construction agreements targeted for conclusion within approximately eight to 12 weeks, subject to technical, commercial and legal negotiations. A third lot covering systems and rolling stock has not yet been awarded.

The railway is intended primarily to improve freight access for copper, cobalt and other minerals produced across Zambia and the wider Central African region, while also carrying agricultural products, petroleum and general freight. Once connected to the existing Benguela railway, the new line would form part of the broader Lobito Corridor linking Zambia, the Democratic Republic of Congo and Angola with Atlantic shipping routes.

Current projections indicate that the new connection could reduce freight transit times to around seven days compared with journeys of up to 16 days on some alternative export routes through southern and eastern Africa. These remain projected benefits rather than operating performance figures.

The project would also significantly expand rail infrastructure across regions where mineral exports currently depend heavily on long overland routes to ports such as Durban, Beira and Dar es Salaam.

Development has already progressed through feasibility studies, concession agreements, preliminary engineering and an intergovernmental agreement, with AFC taking the project forward through Trans African Rail Company FZCO and the project companies Zambia Lobito Railway Limited and Zambia Lobito Railway S.A. Several institutions have announced financing commitments or support connected with the wider corridor, including AFC itself, the African Development Bank, the European Union and the Italian government, whose Mattei Plan supports the Zambian section.

However, the full financing package required for construction has not yet been secured. Debt and equity fundraising is expected to continue during 2027, and the final construction timetable will depend on completion of the EPC negotiations, financial close and remaining implementation requirements.

Earlier indications suggest construction could potentially begin during 2027, while completion has been targeted around 2030. Approximately 5,000 temporary jobs and 500 permanent positions are expected to be associated with construction, logistics, border operations and professional services.

The railway represents one of the largest proposed new rail developments in southern Africa. Beyond its 830 km length, its significance lies in creating a new westward freight corridor connecting inland mining and agricultural regions directly with an Atlantic port, potentially reshaping how bulk commodities move across this part of the continent.