Eugénio Fernandes, Director of the DNEC - Direção Nacional para Economia das Concessões: «The future of the Lobito Corridor lies in its connection with neighbouring countries […] and not in competition between them […]»

At a time in which the Lobito Corridor is playing an increasingly central role in Africa’s economic and logistical landscape, this project is emerging as a strategic hub with regional and global significance. In this interview, Eugénio Fernandes, director of the National Directorate for Transport Concessions, explains how this infrastructure is placing Angola at the heart of major trade routes and attracting international investment, thereby strengthening the country’s role as a leading Atlantic hub.

In what way can the Lobito Corridor establish Angola as a leading Atlantic hub in Africa?
The Lobito Corridor is a game-changing cross-border project with big wins for all of sub-Saharan Africa, given how the projects complement each other and how efforts are being coordinated politically, with the public and private sectors in the SADC region and international investors working together to link two oceans – the Indian and the Atlantic.

To what extent can this project help Angola establish itself as a strategic logistics hub and drive economic diversification?
The future of the Lobito Corridor lies in its connection with neighbouring countries, namely the DRC and Zambia, and not in competition between them. The future also lies in Angola’s regional political stability, transforming the country into a strategic logistics hub to drive economic diversification. With the recent approval by the Council of Ministers of the creation of the Sociedade de Desenvolvimento do Corredor do Lobito (Lobito Corridor Development Company), aimed at promoting economic activities involving national and international public and private entities, the government’s vision for this infrastructure strategy is clear to see.

«The Lobito Corridor is a project that will transform the nation, the region and the world, and is considered a ‘Flagship Project’ for Angola.»

How is the concession model structured and what is the role of DNEC in its implementation?
The Lobito Corridor concession is a rail-port concession, encompassing approximately 1,344 km of railway infrastructure, a mineral terminal, the railway training centre and railway workshops in Huambo, stations along the line and a Freight Transit Terminal (TTM) in MoxicoLeste (Luau), for a period of 30 years. The concessionaire Lobito Atlântico Railway (LAR) is required to implement the investment plan in accordance with the specifications of existing railway infrastructure, signalling, telecommunications and rolling stock, without placing a financial burden on the Angolan State. As part of the Ministry of Transport, the National Directorate for Transport Concessions (DNEC) is responsible for monitoring and safeguarding concessions, defending the interests of the state/sector, with powers that include: monitoring the management of concessions; ensuring compliance with contracts; and preparing activity reports. The DNEC is headed by a National Director and two department heads.

How big a role does international funding, particularly from the United States, play in the development of this project?
Lobito Atlantic Railway (LAR) has secured $753 million in funding from the US International Development Finance Corporation (DFC) and from the Development Bank of Southern Africa (DBSA), which will be used to modernise the Lobito Corridor railway line and the Lobito Mining Port, critically important pieces of infrastructure for regional and continental logistics integration. This financing strengthens the role played by LAR in the rail link between Lobito and Luau, on the border with the DRC, thereby consolidating the corridor as a key transport route for the movement of critical minerals, goods and commodities, stimulating intra-African trade and the connection to global markets. The renovation process began within the context of strategic dialogue with the United States of America, in which the DFC, together with project stakeholders, conducted a due diligence review of Angola’s legal and regulatory framework, the macroeconomic environment, the business climate and the corridor’s existing infrastructure.

This is truly a game-changing project. Can the Lobito Corridor place Angola at the heart of the world’s major trade routes?
The Lobito Corridor is a project that will transform the nation, the region and the world, and is considered a ‘Flagship Project’ for Angola. Stretching 1,344 km between Lobito and Luau, connected by approximately 400 km to Kolwezi, totalling roughly 1,744 km, and with intergovernmental agreements between Angola and Zambia, a further 800 km extension to Chingola (Zambia) is planned through the Africa Finance Corporation (AFC). Under the future Lobito Corridor Development Company, an SPV that will bring together private entities, including DFIsand investment funds, initiatives will be promoted across the entire value chain, including the pre-processing of rare metals and agricultural products, thereby stimulating the manufacturing industry. As such, Angola is establishing itself as a strategic regional and global partner, taking its place at the heart of major international trade routes.

«As such, Angola is establishing itself as a strategic regional and global partner, taking its place at the heart of major international trade routes.»

Text: Editorial Team
Photos: Rights Reserved