- DBSA commits $200 million alongside $553 million from the US International Development Finance Corporation.
- The project targets lower logistics costs and expanded capacity for critical mineral exports from Central and Southern Africa.
- The railway upgrade expected to strengthen regional trade and energy transition supply chains.
The Development Bank of Southern Africa has confirmed a $200 million loan as part of a $753 million financing package for the Lobito Atlantic Railway concession in Angola. The funding was formalised during a signing ceremony in Washington DC and marks a major milestone for the long planned rehabilitation of the strategic rail corridor.
The US International Development Finance Corporation is providing $553 million in senior debt, with the project sponsored by a consortium comprising Trafigura, Mota Engil and Vecturis. The financing will support the rehabilitation of the 1,289 kilometre railway linking the Port of Lobito on Angola’s Atlantic coast to the border of the Democratic Republic of Congo.
The Lobito Atlantic Railway is designed to establish an efficient intermodal transport system for copper and cobalt exports from the mineral rich regions of the DRC to international markets. Planned upgrades include improvements to track infrastructure, signalling systems and rolling stock, aimed at expanding capacity and improving reliability.
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 percent. The improvements are expected to strengthen economic connectivity across Southern Africa and enhance the competitiveness of regional exports.
Mpho Mokwele, Group Executive for Transacting at DBSA, said the conclusion of the financing agreements represents a tangible step forward for the project. He noted that the bank views the strategic value of the investment as extending beyond the rail line itself to the creation of an integrated transport system that maximises 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. The partnership between DBSA and the DFC reflects growing international confidence in Africa’s infrastructure potential and the role of development finance in unlocking long term economic growth.
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.
Author: Bryan Groenendaal
