The Africa Finance Corporation (AFC), a pan-African infrastructure development institution, has announced the conclusion of financing agreements for the Lobito Atlantic Railway Project in Angola. Acting as co-financial adviser with Eaglestone, AFC supported Lobito Atlantic Railway S.A. (LAR), the concessionaire responsible for the 1,300 kilometre Lobito Corridor.
The project brings together multiple international and regional stakeholders, including Mota-Engil, a multinational construction group; Trafigura, a global commodities trading company; and Vecturis, an international rail operator. Collectively, they aim to rehabilitate and operate the Lobito rail line, which connects the Port of Lobito on Angola’s Atlantic coast to the border of the Democratic Republic of Congo (DRC).
The total investment of US$753 million, comprising US$553 million from the U.S. International Development Finance Corporation (DFC) and US$200 million from the Development Bank of Southern Africa (DBSA), is intended to support the upgrade and operation of the 1,300 kilometre brownfield railway corridor. The project is expected to improve transport efficiency and reduce logistical costs associated with mineral exports from Central and Southern Africa to international markets.
According to AFC, the financing could potentially increase the railway’s transportation capacity to approximately 4.6 million metric tonnes per annum, while reducing the cost of transporting critical minerals by around 30 percent. These projections suggest a significant enhancement in trade efficiency across the region. The development is also expected to generate employment during both construction and operation, support skills development, and contribute to local economic activity along the corridor.
Samaila Zubairu, President and CEO of AFC, stated that the project demonstrates AFC’s advisory role in facilitating large-scale, cross-border infrastructure investments within Africa. He observed that such projects align with broader efforts to promote integrated transport systems aimed at strengthening regional connectivity and supply chain resilience.
Nuno Gil, Founding Partner of Eaglestone, described the transaction as a milestone for Southern Africa’s infrastructure sector, emphasising its potential to enhance regional trade and industrial activity.
From the private sector, Manuel Mota, Deputy CEO of Mota-Engil, noted that the collaboration with DFC, DBSA, and the Government of Angola reflects a long-term partnership focused on increasing regional transport capacity and supporting economic diversification. He added that such initiatives could reinforce confidence in Angola’s institutional capacity to attract investment.
Richard Holtum, CEO of Trafigura, said that securing financing from DFC and DBSA provides an opportunity to advance the rehabilitation and operation of the line, highlighting its potential to facilitate the movement of essential minerals to global markets.
The Lobito Corridor holds strategic significance for the Southern African region as it links Angola, the DRC, and Zambia, offering an alternative trade route to congested southern ports. The corridor has the potential to support greater regional integration by enhancing access to export infrastructure and improving logistics efficiency across multiple economies.
Since Angola became a member of the AFC in 2022 and a shareholder in 2025, the partnership between both parties has expanded across infrastructure, energy, and industrial sectors. AFC’s continued involvement in the country reflects a wider institutional approach that prioritises collaborative development and sustainable investment.
The Lobito Atlantic Railway Project exemplifies a broader shift in African-led development efforts that seek to strengthen intra-regional trade, promote local participation, and enhance infrastructure resilience. While the long-term success of the project will depend on operational efficiency, governance, and regional cooperation, its completion could contribute meaningfully to the evolving landscape of African infrastructure finance.
