Webber Wentzel Advised On ESG Considerations In Lobito Corridor Development

Webber Wentzel advised on ESG considerations in Lobito Corridor development

Webber Wentzel has advised on the growing focus on ESG-related disputes linked to infrastructure developments such as the Lobito Corridor, a key trade route involving Angola, Zambia, and the Democratic Republic of Congo (DRC). As businesses and investors emphasise ESG commitments, issues like environmental protection, gender inclusivity, local community development, and human rights are taking center stage in commercial agreements and dispute resolution mechanisms.

A recent United Nations policy brief and the Zambian Committee on Transport, Works, and Supply report raised concerns about potential negative impacts of the Lobito Corridor project, such as habitat destruction, greenhouse gas emissions, traffic congestion, and related public health challenges. In response, the Lobito Corridor Transport Facilitation Agreement (LCTFA) aims to create joint departments to manage environmental, health, and gender issues—reflecting a regional shift toward sustainable development under the UN Agenda for Sustainable Development.

With ESG-related disputes on the rise, international arbitration is emerging as the preferred resolution mechanism due to its flexibility, confidentiality, and ability to provide emergency relief. Arbitral rules such as the Hague Rules on Business and Human Rights Arbitration are also becoming more relevant as companies embed ESG responsibilities into their commercial contracts.

Webber Wentzel is available to advise clients on mitigating ESG-related disputes and drafting appropriate arbitration clauses in commercial agreements.

The insights were provided by Priyesh Daya (Partner), Nick Alp (Partner), Brittany Leroni (Senior Associate), and Litha Raziya (Candidate Attorney).

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