ANGOLA: Railway concessionaire Lobito Atlantic Railway has secured US$753m in loan financing from the US International Development Finance Corp and Development Bank of Southern Africa to support the rehabilitation of the 1 300 km rail corridor connecting the mineral terminal at the deepwater port of Lobito with Luau on the border with DR Congo.
The US$553m from DFC and US$200m from DBSA will enable upgrades to the infrastructure, 1 067 mm gauge track, workshops, signalling and rolling stock on the line, which provides the Copperbelt mining region of DR Congo with access to global markets via the Atlantic port. The investment is expected to increase capacity tenfold to 4·6 million tonnes/year as well as reduce the cost of transporting critical minerals by up to 30%.
LAR is owned by the Lobito Atlantic Holdings consortium of Trafigura, Mota-Engil and Vecturis. ‘This financing from DFC and DBSA marks a major milestone in our vision to establish the Lobito Corridor as Africa’s premier trade route’, said LAR CEO Nicholas Fournier when financial close was reached with a signing ceremony in Washington DC on December 17. ’The funding will enable LAR to significantly expand capacity, improve efficiency and strengthen economic connectivity across Angola and the wider region.’
Africa Finance Corp and Eaglestone acted as co-financial advisers to LAR. The deal ‘demonstrates the strength of AFC’s financial advisory expertise in structuring and advancing complex, cross-border infrastructure transactions of strategic significance’, said AFC President & CEO Samaila Zubairu. ‘This initiative aligns with AFC’s broader development efforts to deliver a transformational transport corridor linking Angola, the DRC and the wider Southern Africa region, reinforcing the critical role of integrated rail and port infrastructure in unlocking regional trade, industrial growth and supply-chain resilience.’
Mpho Mokwele, Group Executive for Transacting at DBSA, said ‘we do not see the strategic value as simply being the rail line itself, but rather the creation of an efficient intermodal system specifically designed to maximise the throughput capacity of the region’.
DFC was established in 2019 as the international investment arm of the US government. It partners with the private sector across strategic sectors including critical minerals, modern infrastructure and advanced technology to advance US foreign policy and strengthen security. The loan to LAR ’further characterises President Trump’s commitment to forging strong partnerships and alliances in Africa’, said DFC CEO Ben Black. ’This investment builds on the impactful work DFC is already leading along the corridor, reinforcing its mission to drive sustainable economic growth and strengthen strategic infrastructure.’
Angola’s Minister of Transport said Dr Ricardo Viegas D’Abreu said ‘while DFC has previously supported projects in the country, this financing stands out for its unprecedented scale and strategic significance. It sets an important benchmark for other sectors to access capital from American institutions. As the concessionaire of the Lobito Corridor railway and port, LAR plays a vital role in connecting regions and facilitating trade. With this financing, LAR will strengthen its operational capacities, ensuring the railway operates at full potential and contributes to sustained economic growth in Angola and across the broader region.’
