Lobito rail corridor modernization gets $553m U.S. loan

Lobito rail corridor modernization will move forward after the United States formally announced on Wednesday a $553 million loan for the Angola project. The announcement came jointly from the U.S. International Development Finance Corporation (DFC) and Angolan authorities.

This is reported by the railway transport news portal Railway Supply.

Financing package and scope of works

The financing was unveiled last year under the administration of former President Joe Biden. It is expected to be complemented by a $200 million contribution from the Development Bank of Southern Africa (DBSA), as reported by International Railway Journal. Together, the funds are intended to support the rehabilitation of about 1,300 kilometers of railway track and the acquisition of new locomotives.

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DFC rationale: supply chains and strategic minerals

According to the DFC, the project is framed as both an economic and geostrategic move. Central Africa’s resource base—especially strategic minerals tied to U.S. industries in the technology and defense sectors—sits at the center of that argument. The agency also says these investments are meant to secure supply chains and limit the influence of strategic competitors, with China cited as the primary concern, a context also discussed by Railway Supply.

Route links and targeted transport-time reduction

European partners are also supporting the Lobito line, which is intended to connect the Angolan port to the border with the mineral-rich Democratic Republic of the Congo and to Zambia. One of the project’s stated goals is to cut transport times for raw materials to the Atlantic coast—reducing them from roughly 45 days by road to less than two days by rail.

Angola’s Ministry of Transport says the loan will cover investments in railway infrastructure, maintenance workshops, signaling systems, and rolling stock. The stated aim is to improve the corridor’s long-term capacity, performance, and reliability as a strategic logistics route.

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