How Investment in the Lobito Corridor Could Boost Zambia’s Agrifood Value Chains and Inclusive Prosperity

An analysis of key value chains along the Lobito Corridor in Zambia showed that soybeans, cassava and horticulture are among the most promising value chains that could attract public and private investment and offer strong economic and social returns.

A team of experts from the FAO Investment Centre highlighted how their competitiveness can dramatically increase, if the benefits of the forthcoming Lobito railway are matched by investments in improved technologies to fill existing yield gaps.

Connecting Angola’s port of Lobito to the Democratic Republic of the Congo (DRC) and Zambia, the Lobito Corridor is an important transcontinental transport route. The rail and road network is set for major expansion and modernization backed by public and private investments from host countries, the European Union, the United States and other international partners.

Initially built in 1902, the Lobito Atlantic Railway was in poor condition following the Angolan civil war (1975-2002). The growing demand for minerals (nickel, copper, cobalt), essential to state-of-the-art technologies, has pushed the three countries to renovate the infrastructure to transport them and other goods to the Lobito port.

Beyond minerals, the renewed corridor infrastructure could unlock the region’s economic potential, increase export opportunities, and promote regional integration. Specifically, it can contribute to strengthening Zambia’s agricultural value chains and to positioning the country as a key player in regional food trade and security dynamics. The corridor will provide the country with a faster and more cost-effective export route, reducing dependence on southern and eastern trade channels. Key provinces—North-Western, Copperbelt, Central, Lusaka, and Southern—are well-positioned to leverage this corridor for increased exports and value addition.

As part of the EU Global Gateway initiative, the European Commission sought the FAO Investment Centre’s support to assess the most potentially competitive Zambian agrifood value chains along the corridor, to identify sustainable private investments.

To this purpose, in the course of 2025, a multidisciplinary team held discussions with key Ministries, national agencies, bilateral donors, Zambian and European financial institutions and major agribusinesses in Zambia. “Soybeans, cassava and fresh vegetables offer strong economic and social returns for potential investment”, summarizes Massimo Pera, team leader and Agribusiness Finance expert at FAO Investment Centre. “These crops link to broader value chains, such as livestock, aquaculture, starch and edible oils, and can deliver significant social impacts, particularly for women and youth, by offering income opportunities, supporting household nutrition and promoting dietary diversification. Access to energy, finance, lack of formal contracting and input costs remain key challenges”.

Findings from the study were presented by the EU and FAO Investment Center at the EU–Zambia Lobito Business Forum, held in Lusaka from 12 to 14 November 2025 under the Global Gateway strategy. The Forum brought together private sector leaders from the EU and Zambia to explore new business and investment prospects, notably in agricultural development.

Lana Zutelija, Lead of Climate and Environment, Rural Development, Trade and Cooperation of the EU Delegation in Zambia, highlighted the importance of this work: “The study provides a comprehensive overview of investment opportunities in agrifood value chains. Contributions of governments and private sector representatives during the Forum will enrich the study so that it can become a precious guide to incentivize and stimulate future sustainable investments along the corridor.”

“The Lobito Corridor holds vast agricultural potential, offering substantial growth opportunities in agribusiness. By enhancing value chains like soybeans, horticulture, cassava, and livestock, Zambia can boost exports regionally. Investments are crucial to transforming our agricultural landscape sustainably, and we invite collaboration from European entities for inclusive development,” said Kenneth Msiska, Director of the Plant Quarantine and Phytosanitary Service under the Ministry of Agriculture.

The discussions held during the Forum will contribute to a better understanding of agrifood value chains in Zambia for the EU Delegation. A similar work was conducted in January 2025 in Angola.

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