The Lobito Corridor Railway Project has reached financial close with US$753 million in funding, paving the way for the rehabilitation and long-term operation of one of Africa’s most strategic rail freight corridors. The project is expected to strengthen cargo flows between the Port of Lobito and the Democratic Republic of the Congo (DRC), while improving export routes for Central Africa’s mining industry.

Major financing secured for a strategic regional transport corridor

The Africa Finance Corporation (AFC) has announced the financial close of the US$753 million Lobito Corridor Railway Project, a landmark infrastructure transaction that will finance the rehabilitation, upgrading and long-term operation of the 1,300-kilometre railway linking the Port of Lobito on Angola’s Atlantic coast to the border with the Democratic Republic of the Congo (DRC).

The rail corridor is a critical multimodal transport route connecting Central Africa’s mining regions with international markets through the Atlantic Ocean.

The financing package includes US$553 million from the U.S. International Development Finance Corporation (DFC) and US$200 million from the Development Bank of Southern Africa (DBSA).

AFC, together with financial advisory firm Eaglestone, acted as co-financial adviser to Lobito Atlantic Railway (LAR), the concessionaire responsible for the project and a joint venture between Mota-Engil and Trafigura.

A strategic corridor for regional mining supply chains

The Lobito Corridor provides an alternative export route for copper, cobalt and other critical minerals produced in the DRC and Zambia’s Copperbelt, reducing reliance on longer logistics corridors serving ports on the Indian Ocean.

The railway upgrade is expected to:

• increase rail freight capacity;
• reduce transit times between mining areas and export terminals;
• lower transport and logistics costs for exporters;
• improve the reliability of regional supply chains.

The project is also expected to diversify logistics options for Central African exporters by strengthening access to Atlantic shipping routes through the Port of Lobito.

Supporting regional trade integration

Beyond the mining sector, the upgraded railway is expected to facilitate broader regional trade by improving freight connectivity between Angola, the DRC and, ultimately, Zambia.

The project aligns with ongoing efforts to modernise Africa’s transport infrastructure and strengthen regional trade corridors under the African Continental Free Trade Area (AfCFTA).

For logistics operators, the corridor creates new opportunities to develop multimodal transport solutions that integrate rail freight with maritime services through the Port of Lobito.

Why it matters

• US$753 million secured to modernise one of Africa’s most strategic cross-border rail freight corridors.
• Lower logistics costs and improved freight efficiency for mining exports from Central Africa.
• Stronger regional connectivity, supporting trade integration between Angola, the DRC and Zambia.

Regional perspective

The financial close of the Lobito Corridor comes as African governments and development finance institutions accelerate investment in strategic freight corridors connecting mineral production hubs with global markets. Alongside transport corridors linking mining regions to the ports of Dar es Salaam, Beira, Nacala and Walvis Bay, the Lobito Corridor is strengthening Central and Southern Africa’s logistics network while improving supply chain resilience for critical mineral exports.

With financial close now secured, the Lobito Corridor Railway Project moves into a new implementation phase. Once modernised, the railway is expected to improve connectivity between the Port of Lobito and Central Africa’s mining regions, strengthen regional supply chains and enhance the competitiveness of cross-border trade under the AfCFTA.