African Finance Corporation (AFC) has secured a major financing breakthrough for the Lobito Atlantic Railway project in Angola, advancing one of Africa’s most strategically important transport corridors aimed at boosting regional trade and mineral exports.
The African continent’s leading infrastructure solutions provider announced on 2 January 2026 that it has signed a significant financing agreement for the project, working with Eaglestone as joint financial advisor to Lobito Atlantic Railway SA (LAR), the lessee and concessionaire of the 1,300 km brownfield rail corridor.
The $753 million financing package, which includes $553 million from the U.S. International Development Finance Corporation (DFC) and $200 million from the Development Bank of Southern Africa (DBSA), marks a significant milestone for the project, which has long been positioned as a gateway between Angola’s Atlantic coast markets and its mineral-rich inland markets.
The project, supported by sponsors including engineering group Mota-Engil, commodity trader Trafigura and international rail operator Vecturis, will rehabilitate, upgrade and operate the railway line linking the port of Lobito with the border of the Democratic Republic of the Congo (DRC). The corridor is expected to strengthen regional integration and improve access to global markets for critical minerals.
Beyond logistics, the project is expected to deliver a wide range of development benefits, including job creation during construction and operation, skills transfer, improved safety standards and long-term economic opportunities for communities along the route. Once completed, the railway is expected to increase transport capacity tenfold to approximately 4.6 million tonnes per year, while reducing the cost of transporting critical minerals by an estimated 30%.
Samaira Zubair, AFC Chairman and CEO, said the agreement confirms AFC’s ability to structure and advance strategically important and complex cross-border infrastructure transactions. He said the signing of this financing agreement demonstrates the strength of AFC’s financial advisory expertise in structuring and facilitating complex cross-border infrastructure transactions of strategic importance.
“This initiative is consistent with AFC’s broader development efforts to deliver innovative transport corridors connecting Angola, the Democratic Republic of the Congo and the wider Southern Africa region,” he said, adding that integrated rail and port infrastructure remains central to unlocking trade, industrial growth and supply chain resilience. He also emphasized the importance of the corridor for Angola, one of the AFC’s valued members and shareholders, and reaffirmed the agency’s long-standing commitment to supporting the country’s infrastructure development and economic priorities.
Eaglestone founding partner Nuno Gil said the deal was a milestone for regional trade. He said advising LAR on this landmark transport infrastructure deal is an important milestone in opening up regional trade and boosting economic activity along the Lobito Corridor. This agreement reaffirms the company’s role in providing large-scale project finance solutions in Southern Africa.
Mota Engil Deputy CEO Manuel Mota said the signing with DFC, DBSA and the Angolan government is the culmination of long-term cooperation with partners, including Trafigura, to advance the Lobito Corridor. He said the strategic agreement will expand transport capacity, reduce transport costs and open access to mineral-rich areas in the Democratic Republic of the Congo and Zambia.
Mota explained that Mota Engil’s participation underlines the company’s commitment to providing infrastructure that supports Angola’s national priorities, economic diversification and regional connectivity. He added that strategic financing not only enables further investment in projects, but also strengthens confidence in Angola’s institutional capacity to attract interest in world-class infrastructure initiatives. He appreciated the expert advisory support from AFC and Eaglestone, which he said was helpful in structuring this funding.
Trafigura chief executive officer Richard Holtum said securing funding from DFC and DBSA will move forward with the reconstruction of this important corridor, supporting the movement of critical metals to global markets and fostering national and regional economic development. He said the railway serves as an important national and regional asset that supports economic development and the efficient movement of critical metals to global markets.
LAR CEO Nicolas Fournier commented that the funding from DFC and DBSA is a major milestone in the company’s vision to establish the Lobito Corridor as Africa’s main trade route. He said the funding will enable LAR to significantly expand production capacity, improve efficiency and strengthen economic links in Angola and the wider region.
The financing will enable upgrades to the railway’s track infrastructure, workshops, signaling systems and rolling stock, increasing capacity, efficiency and reliability on the shortest and most direct import-export route between the Democratic Republic of the Congo’s Copperbelt mining region and international markets via the Atlantic Ocean.
Lobito Railway serves a diverse portfolio of mining companies, regional traders, businesses and logistics operators, providing access to global markets for metals and minerals mined in the Democratic Republic of the Congo through Lobito, a world-class deep-water port. Beyond its role as a key export route for critical metals and minerals, the LAR also serves as a key import gateway, positioning the corridor as a powerful catalyst for national and regional economic growth across sub-Saharan Africa.
Angola’s Minister of Transport, Ricardo Viegas D’Abreu, emphasized that the LAR plays an important role in connecting the region and facilitating trade. He said the funding will enable the authority to strengthen its operational capacity and maximize its railway capabilities, contributing to sustained economic growth in Angola and the wider region.
The Lobito Corridor, jointly managed by Trafigura, Vecturis SA and Mota-Engil through LAR, connects the Copperbelt mining regions of DRC and Zambia with the Atlantic Ocean, providing a shorter and more cost-effective route than traditional corridors through Tanzania and South Africa. The restoration of this corridor is expected to significantly reduce bottlenecks in the region’s mineral supply chain, impacting both global goods flows and regional economic growth.
The importance of this project extends beyond Angola’s borders. By improving the flow of copper, cobalt and other strategic minerals from Central Africa to international markets, the corridor will position the region as a trusted supplier in a global environment that increasingly emphasizes supply chain resilience.
For the United States and its allies, this project supports strategic interests by diversifying access to critical minerals outside of traditional Asian-dominated routes and reducing dependence on a single source of critical metals for technology, renewable energy, and defense sectors.
Analysts say infrastructure projects like the Lobito Corridor can generate multi-layered economic benefits. In addition to export revenues, the railway rehabilitation is expected to stimulate employment in construction, port operations, logistics and ancillary industries, while improving access to local markets and services.
This upgrade includes modern vehicles, updated signaling systems, and comprehensive staff training to address both physical and operational capacity constraints that have historically limited the corridor’s effectiveness.
The agreement also deepens the AFC’s involvement in Angola, following Angola’s accession as an AFC member state in 2022 and elevation to shareholder status in 2025. AFC said it continues to expand its advisory and investment footprint in Angola across infrastructure, energy and industrial projects, including complementary rail developments.
AFC is currently deepening its influence in the country by expanding its portfolio of advisory and investment activities across infrastructure, energy and industrial sectors, including AFC’s complementary greenfield rail projects connecting to Angola.
LAR is owned by Lobito Atlantic Holdings (LAH), a consortium made up of European companies Trafigura, Mota-Engil and Vecturis. Under a 30-year concession, LAR is responsible for modernizing, maintaining and operating a 1,300-kilometre rail line linking the port of Lobito with Luau on the border of Angola and the Democratic Republic of the Congo. LAR also operates the Porto de Lobito Mineral Terminal, which connects to the railway line and provides faster and more efficient services at one of the least congested ports on the Atlantic coast.
The project’s funding, obtained from the United States Development Finance Corporation and the Development Bank of Southern Africa, highlights the growing role of development finance in Africa’s strategic infrastructure. For Angola and its partners, the Lobito Atlantic Railway represents a concrete opportunity to transform resource wealth into sustainable development outcomes.
The Lobito Atlantic Railway is now fully funded and is expected to accelerate the development of the corridor, which is seen as central to Africa’s integrated infrastructure, regional trade and the promotion of global supply chain competitiveness. As the upgrade progresses, LAR’s success is likely to be measured not just in cargo volume, but also in its ability to generate inclusive growth, strengthen regional connectivity, and integrate sustainable practices across its operations.
