Linklaters Lisbon advises Africa Finance Corporation

Linklaters Lisbon and Linklaters Paris have advised the Africa Finance Corporation (AFC) in relation to two concession agreements with the governments of Angola and Zambia for the development and operation of the Zambia-Lobito Rail Project. The agreements were signed on 24 September in a ceremonial signing held on the sidelines of the 79th session of the UN General Assembly.

In 2023, AFC was appointed lead developer on the Zambia Lobito Rail Project in collaboration with the United States Government, the European Union, the African Development Bank and the governments of Angola, the Democratic Republic of Congo and Zambia. This project involves the construction of approximately 800km greenfield rail line, connecting the Benguela rail line in Luacano, Angola, to the existing Zambia Railways Line in Chingola, Zambia.

Minerals supply chain

Once completed, this project corridor aims to unlock the critical minerals supply chain needed for the energy transition, as well as support agriculture and general freight, states Linklaters Lisbon. It will help establish a strategic trade corridor across Africa, stretching from the Port of Lobito on the coast of the Atlantic Ocean to the Port of Dar es Salam in Tanzania on the coast of the Indian Ocean, thereby facilitating global and intra-African trade. This new corridor is set to provide an alternative strategic route to international export markets for Zambia and DRC, notably products from the Copperbelt and North-Western Provinces.

“The project is anticipated to generate an economic benefit of approximately $3 billion in both countries, reduce emissions by around 300,000 tons per year, and create over 1,250 jobs during construction and operations, significantly boosting global and intra-African trade”, informs the law firm.

The advisors

The Linklaters cross-border team was a collaboration between the Paris and Lisbon offices. The team was headed by Justin C. Faye (pictured left), partner in the Energy and Infrastructure practice in Paris and global head of Africa Group, and Francisco Ferraz de Carvalho (pictured right), partner and head of Energy and Infrastructure in Lisbon.

The team also included, in the Paris Energy and Infrastructure practice, Aymeric Voisin (counsel and global mining sector leader) and Laura Nunes Vicente (managing associate), along with, in the public law team in Lisbon, Maria Athayde Tavares (head of public law and managing associate) and Isabela Sarmento (associate).

AMW acted as Zambian counsel to AFC with James Banda, Nakasamba Banda and Chisala Chamaombe and LEAD Dentons acted as Angolan counsels to AFC with Emanuela Vunge, Djamila Pinto and Raquel Lourenço.