Staff Reporter
THE Lobito Corridor railway project, linking Angola’s Atlantic coast to the Democratic Republic of Congo (DRC), has reached financial close on a US$753 million (about N$13.8 billion) funding package aimed at upgrading and expanding the strategic transport route to boost regional trade and economic integration.
The financing milestone was announced by the Africa Finance Corporation (AFC), which acted as co-financial adviser on the transaction alongside Eaglestone, supporting the mobilisation and structuring of funding for Lobito Atlantic Railway S.A. (LAR), the project’s concessionaire.
The financing package includes US$553 million from the United States International Development Finance Corporation (DFC) and US$200 million from the Development Bank of Southern Africa (DBSA).
The funds will support the rehabilitation, modernisation and long-term operation of the 1 300-kilometre railway corridor connecting the Port of Lobito in Angola to the DRC border, including upgrades to track infrastructure, workshops, signalling systems and rolling stock.
AFC President and Chief Executive Officer Samaila Zubairu said the financial close demonstrated the corporation’s role in delivering transformational infrastructure projects that support Africa’s industrialisation and regional integration.
“As one of the continent’s most strategic transport corridors, the project will strengthen regional connectivity, facilitate trade and unlock new opportunities for economic growth across Angola and the wider region,” Zubairu said.
The Lobito Corridor is operated by LAR, a joint venture between Mota-Engil and Trafigura, with the company holding a 30-year concession awarded by the Angolan Government in 2022.
The corridor links the Port of Lobito to Luau on the Angola-DRC border, with a further 450-kilometre section extending into the DRC to Kolwezi through a track access agreement with the Société Nationale des Chemins de Fer du Congo (SNCC).
The project is expected to significantly increase transport capacity, with volumes projected to rise to about 4.6 million tonnes annually, while reducing the cost of transporting critical minerals by an estimated 30%.
The railway is considered a key route for transporting copper, cobalt and other minerals from the resource-rich DRC Copperbelt to international markets through the Port of Lobito.
The investment is also expected to support development along the corridor, including growth in agriculture, mining and heavy industry, while creating employment opportunities through construction, operations, maintenance and procurement activities.
AFC said the project represents a major step towards strengthening regional connectivity and unlocking Africa’s industrial potential.
Through the United States-DRC Strategic Partnership Agreement, the Lobito Corridor is also being positioned as a key project to support investment, diversify the DRC’s mining sector and promote secure supply chains for critical minerals.
The DRC Council of Ministers recently approved the concession agreement for the DRC section of the corridor, awarded to Mota-Engil with support from the DFC.
The American Congolese Business Affairs Committee (ACBAC) welcomed the development, describing it as an important milestone in strengthening US-DRC cooperation and advancing transparent investment partnerships.
The Lobito Corridor has been operational since 2024, following LAR’s takeover of operations and maintenance. The latest financing package will support further upgrades aimed at improving the railway’s capacity, efficiency and reliability.
Photo: Lobito Atlantic Railway
