Lobito Atlantic Railway upgrade financing closes at $753m

Lobito Atlantic Railway upgrade financing has been confirmed at $753 million after the Development Bank of Southern Africa (DBSA) agreed a $200 million loan for the Lobito Atlantic Railway concession in Angola, as outlined by DBSA.

The package was formalised at a signing ceremony in Washington DC and is being presented as a major milestone for the long-planned rehabilitation of this strategic corridor.

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The US International Development Finance Corporation (DFC) is providing $553 million in senior debt, according to a DFC press release. Backed by a consortium comprising Trafigura, Mota Engil and Vecturis, the financing supports the rehabilitation of the 1,289-kilometre rail link from the Port of Lobito on Angola’s Atlantic coast to the border of the Democratic Republic of Congo.

Lobito Atlantic Railway rehabilitation in Angola: scope of works

The Lobito Atlantic Railway is intended to establish an efficient intermodal transport system for copper and cobalt exports from the mineral-rich regions of the DRC to international markets. The upgrade programme covers improvements to track infrastructure, signalling systems and rolling stock, with the focus on lifting capacity and improving reliability along the route.

According to the DFC, the brownfield project is expected to increase Lobito’s transport capacity tenfold to 4.6 million tonnes per year, while reducing critical mineral logistics costs by up to 30%. The financing package and its intended impact have also been discussed in Railway Supply. These changes are expected to strengthen economic connectivity across Southern Africa and improve the competitiveness of regional exports.

DBSA and DFC roles in the Lobito Corridor project

Mpho Mokwele, Group Executive for Transacting at DBSA, said the conclusion of the financing agreements represents a tangible step forward for the project. He added that DBSA sees the strategic value of the investment as extending beyond the rail line itself, supporting the creation of an integrated transport system designed to maximise regional throughput capacity.

The Lobito Corridor is widely seen as a key enabler of regional integration, supporting increased intra-African trade while securing more resilient supply chains for minerals essential to the global energy transition. DBSA said the partnership with the DFC reflects growing international confidence in Africa’s infrastructure potential and the role of development finance in unlocking long-term economic growth.

What the Lobito Corridor investment is meant to deliver?

DBSA said it remains committed to supporting large-scale infrastructure projects that improve connectivity, drive industrial development and contribute to sustainable growth across Southern Africa, with the Lobito Corridor positioned as a cornerstone investment in the region’s future.

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