The Africa Finance Corporation (AFC) has announced a $753 million financing agreement for the Lobito Atlantic Railway Project in Angola, marking a major step toward transforming regional infrastructure and trade.
The package includes $553 million from the US International Development Finance Corporation and $200 million from the Development Bank of Southern Africa.
“The signing of the financing agreements for the Lobito Atlantic Railway demonstrates the strength of AFC’s financial advisory expertise in structuring and advancing complex, cross-border infrastructure transactions of strategic significance,” said the AFC president and chief executive Samaila Zubairu.
“The Lobito Corridor is of particular importance for Angola, reaffirming our commitment to supporting the country’s infrastructure development and economic priorities” he added.
AFC, alongside Eaglestone, acted as co‑financial adviser to Lobito Atlantic Railway SA (LAR), the concessionaire of the 1,300‑kilometre corridor linking the Port of Lobito on Angola’s Atlantic coast to the Democratic Republic of Congo (DRC) border.
Backed by sponsors Mota‑Engil, Trafigura and Vecturis, the project will rehabilitate, upgrade and operate the brownfield rail line, boosting regional integration and access to global markets.
Transport capacity is expected to increase 10‑fold to 4.6 million metric tonnes annually, while mineral transport costs could fall by 30 percent.
Beyond trade benefits, the initiative promises job creation, skills development, improved safety standards and long‑term economic opportunities for communities along the corridor.
Eaglestone’s Nuno Gil described the transaction as a “landmark” for regional trade, while Mota‑Engil deputy chief executive Manuel Mota highlighted its role in opening access to mineral‑rich regions of the DRC and Zambia.
Trafigura chief executive Richard Holtum added that the railway would serve as a key domestic and regional asset driving economic development.
“As a shareholder of LAR, we see the railway as a key domestic and regional asset that will drive economic development and support the movement of critical metals to global markets,” Holtum said.
The agreement builds on AFC’s deepening partnership with Angola, which became a member state in 2022 and a shareholder in 2025.
AFC is also advancing complementary projects in energy, industry, and rail infrastructure to reinforce Angola’s connectivity and diversification agenda, Zubairu said.
APA