The European Union and Zambia have signed ten new funding agreements worth €200 million to support a comprehensive development strategy for the Lobito Corridor. The ceremonial signing, witnessed by President Hakainde Hichilema, took place during the EU-Zambia Lobito Corridor Business Forum under the Global Gateway initiative.
The agreements span multiple sectors, including:
Railway Revamp: The EU will contribute K1.3 billion of the K5 billion earmarked to modernize Zambia Railways Limited, aiming to improve efficiency, safety, and competitiveness in rail freight transport.
Water and Energy: Over K1 billion will be invested in enhancing water supply through renewable solar energy and energy efficiency in North Western and Copperbelt provinces. The Nexus Energy Water project will benefit utilities in Solwezi, Ndola, and Chingola, boosting climate resilience and service delivery.
Agriculture: A €36 million programme will improve market access for smallholder farmers, promoting sustainable, inclusive, and climate-resilient agricultural growth.
Renewable Energy: The EU will support the establishment of Illute, a 32-megawatt solar power project in Western Province, expanding Zambia’s clean energy footprint.
Finance Access: The European Investment Bank and Zambia Industrial Commercial Bank signed an agreement to enhance financing for agri-food SMEs and smallholder farmers.
Mining Cooperation: A Memorandum of Understanding between the Zambia Chamber of Mines and Mining Finland will promote responsible mining through knowledge exchange, capacity building, and joint initiatives.
Education and Governance: Additional support includes over K1 billion for education reforms, K150 million for protecting human rights in the critical raw materials value chain, and initiatives for green transition, circular economy, and skills development in artisanal and small-scale mining.
These agreements reflect a shared commitment to sustainable development, regional integration, and inclusive economic growth along the Lobito Corridor.
