from OKORO CHINEDU in Lagos, Nigeria
LAGOS, (CAJ News) – THE Africa Finance Corporation (AFC), a leading continental infrastructure solutions provider, has played a central role as Co-Financial Adviser alongside Eaglestone in securing a US$753 million financing package for the Lobito Atlantic Railway (LAR) in Angola.
The railway concessionaire, Lobito Atlantic Railway SA, will use the funds to rehabilitate, upgrade, and operate the 1,300-kilometre brownfield corridor connecting Angola’s Port of Lobito on the Atlantic coast to the Democratic Republic of Congo (DRC) border.
The financing, comprising US$553 million from the US International Development Finance Corporation (DFC) and US$200 million from the Development Bank of Southern Africa (DBSA), is expected to increase the railway’s transportation capacity ten-fold to 4.6 million metric tonnes per year and reduce the cost of transporting critical minerals by an estimated 30 percent.
“This initiative is transformational for Angola and the Southern African region,” said Samaila Zubairu, President and CEO of AFC.
“It reinforces the importance of integrated rail and port infrastructure in unlocking regional trade, industrial growth, and supply-chain resilience.”
The Lobito Atlantic Railway is a critical trade corridor that supports Angola’s economic diversification and regional integration.
Beyond serving Angola’s mining and export sectors, the railway provides vital connectivity to neighbouring countries including the Democratic Republic of Congo (DRC), Zambia, and Namibia, facilitating the movement of minerals and other commodities to global markets via the Atlantic coast.
For landlocked neighbouring states, it represents a faster, safer, and more cost-efficient route for exports and imports, enhancing the competitiveness of Southern Africa’s mineral and industrial sectors.
Angolan government officials emphasised the strategic importance of the project.
Transport Minister Ricardo de Abreu said, “The rehabilitation of the Lobito Corridor is a cornerstone for Angola’s national development strategy. It will create jobs, enhance trade competitiveness, and strengthen our position as a logistics hub for the region.”
Meanwhile, Minister of Economy and Planning Susana Garcia added, “This financing demonstrates investor confidence in Angola’s institutional and economic capacity and is vital for advancing sustainable economic growth in our country and across Southern Africa.”
The project is backed by leading sponsors including Mota-Engil, a multinational engineering and construction group; Trafigura, a global commodities trading and logistics company; and Vecturis, an experienced rail operator.
Manuel Mota, Deputy CEO of Mota-Engil, said: “This strategic agreement will expand transport capacity, reduce transit costs, and open access to mineral-rich regions in the DRC and Zambia. It reinforces Angola’s regional connectivity and economic diversification priorities.”
Richard Holtum, CEO of Trafigura, highlighted the railway’s broader impact: “LAR is a key regional asset that will drive economic development and support the movement of critical metals to global markets.”
The Lobito Corridor also contributes to socio-economic development along its route, including job creation, skills development, and improved safety standards.
AFC’s involvement underscores its commitment to supporting Angola’s infrastructure development, having deepened its presence following Angola’s accession as a member state in 2022 and shareholder status in 2025.
With this financing milestone, the Lobito Atlantic Railway is poised to become a model for regional infrastructure integration, strengthening trade, logistics, and industrial growth across Southern Africa.
– CAJ News