The Lobito Corridor project, which connects four African countries, is ready for implementation after the US awarded a technical assistance grant for an environmental assessment study.
A feasibility study and the signing of the concession agreement is also complete for the 780km greenfield railway connecting the Lobito rail line in Luacano, Angola, to the existing railway line in Chingola, Zambia.
The African Finance Corporation (AFC), the lead developer of the Zambia-Lobito railway, signed a concession agreement with the governments of Zambia and Angola to develop and operate the rail on the sidelines of the UN General Assembly in New York City.
During the ceremony attended by the US Secretary of State Antony Blinken, the US Trade and Development Agency awarded a technical assistance grant of $2 million to the AFC for an environmental and social impact assessment.
Blinken also announced the official joining of Tanzania in the project.
Read: US taps Tanzania in battle with China for minerals
“The Lobito Corridor – connecting Angola, Zambia, and the Democratic Republic of Congo – is one of our biggest projects. The ultimate goal is infrastructure connecting the Atlantic to the Indian Ocean,” Mr Blinken said.
“Today, Tanzania is also joining conversations about the Lobito Corridor for the first time – something we very much welcome.”
The expansion of the Lobito Corridor to include Tanzania is meant to allow the project to run all the way to the Indian Ocean to facilitate transportation of nickel and other minerals.
Blinken said that so far, the United States and its partners have committed over $4 billion to Lobito Corridor projects.
USTDA Director Enoh T. Ebong said the project would facilitate economic activity, trade and critical minerals development between the Port of Lobito in Angola and Zambia’s Copperbelt.
Read: US commits $360m to Lobito Corridor project
US priority
“This project will help reshape the economic landscape of Angola, Zambia, and the Democratic Republic of the Congo, and it will foster trade while uplifting the people whose livelihoods will be tied to economic activity along the corridor,” Dr Ebong said.
“Support for the rail line will contribute to the development of the Lobito Corridor, a US government priority under the Partnership for Global Infrastructure and Investment (PGI) that seeks to provide a private sector-driven, sustainable and transparent option for emerging markets seeking infrastructure investment to accelerate inclusive economic development.”
Samaila Zubairu, President and CEO of AFC, said that once completed, the Zambia-Lobito Rail Corridor will create a trans-continental trade corridor that will facilitate trade and investment across Africa and in various sectors, including mining, agriculture, energy and tourism.
“We are therefore pleased to receive this project preparation grant from USTDA to advance the ESIA for the project, underscoring the significance of investing in enabling infrastructure in Africa to secure trade routes and enable critical minerals supply for the global energy transition.”
The high-level discussion advanced PGI’s flagship Lobito Corridor, which aims to develop trans-continental link from the Atlantic to the Indian Ocean.
Foreign ministers of Angola, DRC, Tanzania and Zambia attended the event, alongside the European Partnerships Commissioner, Italian Vice Foreign Minister, the AFC CEO and Senior Vice President for Agriculture and Human Development of the African Development Bank.
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Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.
The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.
“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.
“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”
The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.
Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.
The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.
Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.
The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.
Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.
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Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.
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