African Finance Corporation (AFC) has announced the signing of a significant financing agreement for the Lobito Atlantic Railway project in Angola, acting as joint financial advisor with Eaglestone to Lobito Atlantic Railway SA (LAR), the project’s concessionaire and lessee.
The $753 million financing package includes $553 million from the U.S. International Development Finance Corporation (DFC) and $200 million from the Development Bank of Southern Africa (DBSA). The funding marks a major milestone for the 1,300-kilometre brownfield rail corridor linking the port of Lobito on Angola’s Atlantic coast to the Democratic Republic of the Congo (DRC) border.
Lobito Atlantic Railway is supported by sponsors including Mota-Engil, Trafigura and Vecturis, who bring engineering, goods logistics and freight rail operations expertise to the project. The initiative aims to rehabilitate, upgrade and operate existing railway lines, strengthen regional integration and improve access to global markets.
According to AFC, the loan is expected to increase Lobito’s transport capacity tenfold to approximately 4.6 million tonnes per year, reducing the cost of transporting critical minerals by an estimated 30%. The corridor is considered a strategic route for transporting minerals from the DRC and Zambia to international markets via Angola’s Atlantic ports.
“The signing of the Lobito Atlantic Railway financing agreement demonstrates the strength of AFC’s financial advisory expertise in structuring and facilitating complex cross-border infrastructure transactions of strategic importance,” said Samaira Zubair, President and CEO of African Finance Corporation. He added that the project is “aligned with AFC’s broader development efforts to provide an innovative transport corridor connecting Angola, the Democratic Republic of the Congo and the wider Southern African region.”
Mr. Zubair also emphasized the importance of this project for Angola, noting that it strengthens AFC’s long-term commitment to supporting the country’s infrastructure development and economic priorities.
Eaglestone, which co-advised on the deal, said it was an important step in opening the door to regional trade. “We are pleased to have advised LAR on this landmark transportation infrastructure transaction, which marks an important milestone in opening up regional trade and boosting economic activity along the Lobito Corridor,” said Nuno Gil, founding partner of Eaglestone.
On the sponsor side, Mota-Engil explained that this funding is the result of a long-term collaboration. “The signing with DFC, DBSA and the Angolan government is the culmination of a long-term collaboration to advance the Lobito Corridor, together with our partner Trafigura,” said Manuel Mota, Deputy CEO of Mota-Engil. He added that the agreement will expand shipping capacity, reduce transportation costs and improve access to mineral-rich areas in the Democratic Republic of the Congo and Zambia.
Trafigura also emphasized the strategic value of railways. “As shareholders in LAR, we believe that rail is an important national and regional asset that drives economic development and supports the movement of critical metals to global markets,” said Richard Holtum, CEO of Trafigura.
Beyond trade and logistics, the project is expected to generate broader development benefits, including job creation during construction and operation, skills development, improved safety standards and long-term economic opportunities for communities along the corridor.
Angola has deepened its relationship with the AFC in recent years, becoming a member state in 2022 and a shareholder in 2025. AFC said it continues to expand its advisory and investment footprint in Angola across infrastructure, energy and industrial sectors, including complementary rail developments linked to the Lobito Corridor.
