TAZARA to Sign Concession Agreement to Develop Lobito Corridor

Finance and National Planning Minister Dr Situmbeko Musokotwane says Zambia will sign a concession agreement with TAZARA for the development of the Lobito Corridor to facilitate trade and promote regional integration.

Dr Musokotwane explained that this agreement, due to Zambia’s financial constraints, will be completed under a Public Private Partnership (PPP).

Speaking during a public lecture on the challenges of implementing African Free Trade Agreement, organised by the Harry Mwaanga Nkumbula Foundation on the 7 August, Dr Musokotwane stressed that export trade was the primary means by which Zambia could reduce poverty and improve welfare.

He outlined the numerous obstacles that African trade faces, emphasising transportation as a major barrier that has restricted Zambia’s ability to export to neighbouring countries. He stated that the development of the Lobito Corridor is essential for ensuring Zambia’s sustained economic progress.

“This is why we are pushing very hard for the Lobito Corridor to link us to Angola. This is why we are about to sign a concession agreement with TAZARA, [in] the next one month at most, so that we have a whole corridor from Lobito, coming to Zambia, passing through Zambia, all the way to Dar es Salaam”.

The concession agreement to develop the Lobito Corridor reflects wider African efforts, through the African Free Trade Agreement, to promote greater economic integration and closer regional ties to support continued development.

Professor Ndulo highlighted that the “successful implementation of the African Free Trade Agreement will require governments and business leaders across Africa to commit to clear plans and consistent action to maximise its offering.”

Through the concession agreement, the government has demonstrated its commitment to increasing trade across Africa while continuing to prioritise policies aimed at reducing poverty and improving the welfare of its people.