AFC Secures Landmark $753 Million Financing for Lobito Corridor Railway Project
The Africa Finance Corporation (AFC) has successfully closed a US$753 million financing package for the rehabilitation of the Lobito Corridor Railway in Angola. This is one of the largest cross-border infrastructure transactions in Africa in recent years and marks a significant step toward improving regional connectivity and trade.
The financing 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). AFC served as co-financial adviser on the deal alongside Eaglestone.
About the Lobito Corridor Project
The project involves the rehabilitation and modernisation of approximately 1,300 kilometres of railway line running from the Port of Lobito in Angola to the border with the Democratic Republic of Congo (DRC). The concession is held by Lobito Atlantic Railway (LAR), a joint venture between Mota-Engil and Trafigura.
Once completed, the upgraded railway will provide a faster and more reliable route for exporting critical minerals, especially copper and cobalt from Zambia and the DRC. These minerals are vital for the global shift toward electric vehicles and renewable energy technologies.
Expected Economic Benefits
The Lobito Corridor is expected to significantly reduce transportation costs and improve trade efficiency between Angola, the DRC, and Zambia. For landlocked countries in the region, access to a modern Atlantic port through this corridor offers a strategic alternative to existing routes.
The project is also expected to attract more investment into mining and related industries while creating employment opportunities during construction and operation. It supports Africa’s broader industrialisation and regional integration agenda under the African Continental Free Trade Area.
Strategic Importance for the Continent
This successful financial close demonstrates growing international investor confidence in well-structured African infrastructure projects. It also highlights AFC’s capability in mobilising large-scale funding for transformative initiatives.
Experts view the Lobito Corridor as a model for future public-private partnerships in Africa. By improving connectivity and facilitating the export of critical minerals, the project positions the region to play a bigger role in global supply chains while driving long-term economic growth across multiple countries.