A significant concession agreement has been formalized between Angola and the Democratic Republic of Congo, focusing on the vital Dilolo-Sakania railway line. This pivotal deal outlines the comprehensive revitalization, upgrade, expansion, and operational management of the rail corridor for a period of three decades.

Under the terms of the agreement, the Congolese state will maintain full ownership of the railway infrastructure. Furthermore, it will hold a minimum of 10% equity in the project company established for this initiative. Upon the conclusion of the thirty-year concession, all infrastructure assets are slated to revert entirely to the Congolese government.

The concessionaire is tasked with shouldering all financial responsibilities and traffic-related risks without any sovereign guarantees or operational subsidies from the Democratic Republic of Congo. President Félix Tshisekedi of the DRC has underscored the anticipated national economic benefits, including significant job creation, youth training programs, the engagement of local businesses, and crucial technology transfer.

This strategic corridor is designed to facilitate the transport of a diverse range of goods, extending beyond minerals to encompass agricultural produce, industrial raw materials, hydrocarbons, containerized cargo, consumer products, and passenger services.

Both Kinshasa and Luanda are also committed to synchronizing their railway operations, tariff structures, and customs procedures to ensure seamless cross-border movement.

The ambitious project, with an estimated cost of 1.2 billion, will be complemented by the development of cross-border roads, modern logistics platforms, and robust energy infrastructure. Additionally, the two nations aim to rejuvenate their cooperation in the hydrocarbon sector and accelerate electrical interconnection efforts, particularly to bolster power supply to the mineral-rich Katanga region.

By Mariama Hamani — Analyst