Africa-Press – Angola. Economist Osvaldo Cruz argues that exploration of the Lobito Corridor is essential to boost agro-industrial production in the provinces of Benguela, Huambo, Bié and Moxico, with a view to exporting it to neighboring countries.
The Lobito Corridor, which includes the 1,344-kilometer railway line of the Benguela Railway to Luau, on the eastern border of Angola with the Democratic Republic of Congo, and the mineral port, has been under the management of the Consortium for 30 years. Lobito Atlantic Railway, made up of the companies Vecturis, Trafigura and Mota Engil.
Despite the fact that the concession contract with the Angolan State, signed in November 2022, and which allows the concessionaire to transit goods, is still in its initial phase, Osvaldo Cruz foresees an increase in the production capacity of companies along this corridor.
According to him, national companies will be able to use the Lobito Corridor in search of inputs to increase their production capacity and meet the strong demand for products consumed in the country.
That is why it is estimated that, when exploration in the Lobito Corridor reaches the peak phase in which it is expected to transport five million tons of products against the current 300,000, the flow of production in the provinces of Benguela, Huambo, Bié and Moxico will no longer be a “handicap”.
In an interview, the academic also considers it important that local businessmen are able to use the Lobito Corridor, in order to be able to deliver their products to landlocked countries, namely Zambia and the Democratic Republic of Congo (DRC) .
He says that the expectation is that products such as fish and salt, and others from the agro-industrial sector that Benguela province already produces significantly, will reach other corners of the country through the Lobito Corridor.
Streamline business partnerships
Osvaldo Cruz sees the Lobito Corridor as a lever for the economy, as it is one of the main logistics platforms in the country.
In fact, he stresses that its full operation will facilitate and streamline business partnerships between Angolan, Zambian and Congolese businessmen, resulting in an increase in the generation of jobs.
“It is a path that essentially serves to encourage both imports and exports of products and thus boost the activity of companies”, underlined the interviewee.
In his analysis, it will soon be possible to witness the intensification of commercial exchanges, which is why national businessmen must make the best use of the existing potential.
“We are talking about a potential that is not yet being effectively exploited”, he commented, going on to speak of added value for companies, as, taking advantage of the capacity of this corridor, they will be more competitive.
The academic sees in the Lobito Corridor an opportunity for new business, as the movement of products at a relatively lower cost than road transport could attract companies, influencing the drop in prices.
Because businessmen from neighboring countries, including Namibia, have vast experience, Osvaldo Cruz asserts how important it is for their Angolan counterparts to be better prepared in terms of production, otherwise they will be overtaken.
In addition to large companies, still according to the economist, medium and small producers will also be able to use the Lobito Corridor, as it is designed to meet the needs of the country’s economic agents.
For More News And Analysis About Angola Follow Africa-Press
