Africa Finance Corporation (AFC) has secured a major financing breakthrough for the Lobito Atlantic Railway Project in Angola, advancing one of Africa’s most strategically significant transport corridors aimed at boosting regional trade and mineral exports.
The continent’s leading infrastructure solutions provider announced on January 2, 2026, that it had signed key financing agreements for the project, acting alongside Eaglestone as co financial adviser to Lobito Atlantic Railway S.A. (LAR), the borrower and concessionaire of the 1,300 kilometre brownfield rail corridor.
The 753 million dollar financing package comprises 553 million dollars from the United States International Development Finance Corporation (DFC) and 200 million dollars from the Development Bank of Southern Africa (DBSA), marking a critical milestone for a project that has long been positioned as a gateway between Angola’s Atlantic coast and mineral rich inland markets.
Backed by sponsors including engineering group Mota-Engil, commodities trader Trafigura, and international rail operator Vecturis, the project will rehabilitate, upgrade, and operate the rail line linking the Port of Lobito to the Democratic Republic of Congo (DRC) border. The corridor is expected to strengthen regional integration and improve access to global markets for critical minerals.
Beyond logistics, the project is projected to deliver broad development gains, including job creation during construction and operations, skills transfer, improved safety standards, and long term economic opportunities for communities along the route. Once completed, the railway’s transport capacity is expected to increase tenfold to about 4.6 million metric tonnes per year, while cutting the cost of moving critical minerals by an estimated 30 percent.
AFC President and Chief Executive Officer Samaila Zubairu said the deal underscored the institution’s ability to structure and advance complex cross border infrastructure transactions of strategic importance. He described the signing of the financing agreements as demonstrating the strength of AFC’s financial advisory expertise in structuring and advancing complex, cross border infrastructure transactions of strategic significance.
“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,” he said, adding that integrated rail and port infrastructure remains central to unlocking trade, industrial growth, and supply chain resilience. He also highlighted the corridor’s importance to Angola, one of AFC’s valued member countries and shareholders, reaffirming the institution’s long standing commitment to supporting the country’s infrastructure development and economic priorities.
Eaglestone’s founding partner, Nuno Gil, described the transaction as a landmark for regional trade. He stated that advising LAR on this landmark transport infrastructure transaction represents a key milestone to unlock regional trade and boost economic activity along the Lobito Corridor. The deal reaffirms the firm’s role in delivering large scale project finance solutions in Southern Africa.
Mota-Engil Deputy CEO Manuel Mota said the signing with DFC, DBSA, and the Government of Angola marked the culmination of long term collaboration with partners, including Trafigura, to advance the Lobito Corridor. This strategic agreement will expand transport capacity, reduce transit costs, and open access to the mineral rich regions of the DRC and Zambia, he noted.
Mota explained that Mota-Engil’s participation underscores its commitment to deliver infrastructure that supports Angola’s national priorities, economic diversification, and regional connectivity. He added that the strategic financing not only enables further investment in the project but also reinforces confidence in Angola’s institutional capacity to attract interest for world class infrastructure initiatives. He appreciated the expert advisory support from AFC and Eaglestone, whose guidance was instrumental in structuring this financing.
Trafigura Chief Executive Richard Holtum said securing financing from DFC and DBSA advances the rehabilitation of this vital corridor, supporting the movement of critical metals to global markets and promoting domestic and regional economic development. He described the railway as serving as a key domestic and regional asset that supports economic development and the efficient movement of critical metals to global markets.
Nicholas Fournier, Chief Executive Officer of LAR, commented that the financing from DFC and DBSA marks a major milestone in the company’s vision to establish the Lobito Corridor as Africa’s premier trade route. He stated that the funding will enable LAR to significantly expand capacity, improve efficiency, and strengthen economic connectivity across Angola and the wider region.
The loan will enable upgrades to the railway’s track infrastructure, workshops, signaling systems, and rolling stock, enhancing the capacity, efficiency, and reliability of the shortest and most direct import export route between the Copperbelt mining region of the DRC and international markets via the Atlantic Ocean.
The Lobito Railway serves a diverse portfolio of mining companies, regional traders, and business and logistics operators, providing access to global markets for metals and minerals mined in the DRC through the world class deepwater port of Lobito. Beyond its role as a vital export route for critical metals and minerals, LAR also functions as a critical import gateway, positioning the corridor as a powerful catalyst for domestic and regional economic growth across sub Saharan Africa.
Ricardo Viegas D’Abreu, Angola’s Minister of Transport, emphasized that LAR plays a vital role in connecting regions and facilitating trade. He stated that with this financing, authorities will strengthen operational capacities, ensuring the railway functions at full potential and contributes to sustained economic growth in Angola and across the broader region.
The Lobito Corridor, jointly managed by Trafigura, Vecturis SA, and Mota-Engil through LAR, connects the copperbelt mining regions of the DRC and Zambia to the Atlantic, offering a shorter and more cost efficient route than traditional corridors through Tanzania or South Africa. The corridor’s rehabilitation is expected to significantly reduce bottlenecks in the regional mineral supply chain, impacting both global commodity flows and local economic growth.
The project’s significance extends beyond Angola’s borders. By improving the flow of copper, cobalt, and other strategic minerals from central Africa to international markets, the corridor positions the region as a reliable supplier in a global environment increasingly focused on supply chain resilience.
For the United States and allied economies, the project supports strategic interests by diversifying access to critical minerals outside traditional Asian dominated routes, reducing reliance on single sources for metals essential to technology, renewable energy, and defense sectors.
Analysts note that infrastructure projects like the Lobito Corridor can generate multiple layers of economic impact. Beyond export revenues, rehabilitating the railway is expected to stimulate employment in construction, port operations, logistics, and ancillary industries, while improving local access to markets and services.
The upgrades will include modern rolling stock, updated signaling systems, and comprehensive staff training, addressing both physical and operational capacity constraints that have historically limited the corridor’s effectiveness.
The deal also deepens AFC’s engagement in Angola, following the country’s accession as an AFC member state in 2022 and its elevation to shareholder status in 2025. AFC said it continues to expand its advisory and investment footprint in Angola across infrastructure, energy, and industrial projects, including complementary railway developments.
Today, AFC is deepening its footprint in the country through a growing portfolio of advisory and investment engagements across infrastructure, energy, and industrial sectors, including AFC’s complementary greenfield railway project connecting to Angola.
LAR is owned by Lobito Atlantic Holdings (LAH), a consortium composed of the European companies Trafigura, Mota-Engil, and Vecturis. Under a 30 year concession, LAR is responsible for modernizing, maintaining, and operating the 1,300 kilometer railway line that connects the Port of Lobito to Luau on Angola’s border with the DRC. LAR also operates the Porto do Lobito Mineral Terminal, which connects to the railway line, providing faster and more efficient service in one of the most uncongested ports on the Atlantic coast.
The project’s financing, drawn from the United States Development Finance Corporation and the Development Bank of Southern Africa, underscores the growing role of development finance in Africa’s strategic infrastructure. For Angola and its partners, the Lobito Atlantic Railway represents a tangible opportunity to translate resource wealth into sustainable development outcomes.
With financing now in place, the Lobito Atlantic Railway is expected to accelerate delivery of a corridor seen as central to Africa’s push for integrated infrastructure, regional trade, and global supply chain competitiveness. As upgrades progress, the success of LAR will likely be measured not only by cargo volumes but by its ability to generate inclusive growth, enhance regional connectivity, and integrate sustainable practices across operations.
