Staff Writer
Africa Finance Corporation has announced the signing of key financing agreements for the Lobito Atlantic Railway Project in Angola, where it acted as co-financial adviser alongside Eaglestone to Lobito Atlantic Railway S.A., the borrower and concessionaire of the 1 300-kilometre brownfield rail corridor.
The project is backed by sponsors including Mota-Engil, commodities trader Trafigura, and rail operator Vecturis. The partners bring technical, operational and commercial expertise to support the long-term operation of the corridor.
The signing covers a US$753 million financing package made up of US$553 million from the U.S. International Development Finance Corporation and US$200 million from the Development Bank of Southern Africa.
The funding marks a milestone for the Lobito Atlantic Railway, which will rehabilitate, upgrade and operate the 1 300-kilometre line linking the Port of Lobito on Angola’s Atlantic coast to the Democratic Republic of Congo border. The corridor is expected to strengthen regional integration and improve access to global markets.
The project is expected to create jobs during construction and operation, support skills development, improve safety standards, and expand economic opportunities for communities along the route. Transport capacity is expected to increase tenfold to about 4.6 million metric tonnes a year, while the cost of moving critical minerals is projected to fall by about 30 percent.
“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. 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, reinforcing the critical role of integrated rail and port infrastructure in unlocking regional trade, industrial growth, and supply-chain resilience,” said Samaila Zubairu, President and CEO of Africa Finance Corporation.
Nuno Gil, founding partner of Eaglestone, said: “We are delighted to have advised LAR in this landmark transport infrastructure transaction that is a key milestone to unlock regional trade and boost economic activity along the Lobito Corridor.”
Manuel Mota, deputy CEO of Mota-Engil, said, “The signing with DFC, DBSA, and the Government of Angola marks the culmination of long-term collaboration, together with our partner, 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 Democratic Republic of Congo and Zambia.”
Richard Holtum, CEO of Trafigura, said, “We are pleased that Lobito Atlantic Railway has secured financing from DFC and DBSA to further advance the rehabilitation and operation of the line in Angola. 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.”
Caption
Africa Finance Corporation announced the signing of key financing agreements for the Lobito Atlantic Railway Project in Angola.
