The US International Development Finance Corporation (DFC) and the Development Bank of Southern Africa (DBSA) have signed an agreement for them to provide $753mn for the refurbishment of Angola’s Lobito Atlantic Railway (LAR).
DFC, which will contribute $553mn towards the project, said in a statement on December 17 that the loan will support the rehabilitation and operation of the brownfield mineral port in Lobito and an approximately 1,300-kilometre brownfield rail line in Angola running between the Lobito port to Luau on Angola’s border with the Democratic Republic of Congo (DRC).
The investment will boost Lobito’s transportation capacity tenfold to 4.6mn tonnes as well as reduce the cost of transporting critical minerals by up to 30%.
“The signing of our loan agreement for the Lobito Atlantic Railway in Angola further characterises President Trump's commitment to forging strong partnerships and alliances in Africa,” said Ben Black, DFC CEO.
“This investment builds on the impactful work DFC is already leading along the corridor, reinforcing its mission to drive sustainable economic growth and strengthen strategic infrastructure.”
LAR is a consortium of Mota Engil of Portugal, global commodity trader Trafigura and rail company Vecturis SA. It has a 30-year concession to transport vital minerals, including copper and cobalt, from DRC through Lobito to global markets.
DBSA group executive for transacting Mpho Mokwele, whose group contributed $200mn, said its investment aligns with its longstanding regional integration strategy.
“We do not see the strategic value as simply being the rail line itself, but rather the creation of an efficient intermodal system specifically designed to maximise the throughput capacity of the region,” Mokwele said.
Angola’s Minister of Transport, Ricardo Viegas D’Abreu highlighted that the LAR plays a “vital” role in facilitating trade, and the financing will help it strengthen its operational capacities, ensuring the railway operates at full potential and contributes to sustained economic growth in Angola and across the broader region.
Jason Tuvey, deputy chief emerging markets economist at Capital Economics, noted that the aim is to drastically reduce the journey time for critical mineral exports from months to days, “and present an opportunity for the US and its allies to access minerals like cobalt and copper from the DRC as well as Zambia.”
He added, “At a time when the US has largely disengaged from Africa during Trump’s second term, through removing tariff-free access for African exporters to the US as well as slashing aid, the financing for the rail project will be welcomed.”
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