Angola’s Lobito Atlantic Railway (LAR) has secured $753 million in funding to rehabilitate and expand a vital 1,300-kilometre rail link connecting the mineral-rich inland region with the port of Lobito, strengthening the corridor linking the Democratic Republic of the Congo and Zambia to international markets.
The funding, raised from the US Development Finance Corporation (DFC) and the Development Bank of South Africa (DBSA), will support a comprehensive upgrade of the rail and brownfield mineral ports, allowing them to transport up to 4.6 million tonnes per year, ten times the corridor’s current capacity, and reducing the cost of transporting critical minerals by approximately 30 per cent.
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The financing package of $553 million from DFC and $200 million from DBSA highlights the growing role of development finance in Africa’s strategic infrastructure. 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.
Dr. Ricardo Viegas Dabreu, Minister of Transport of Angola, said: “The LAR plays an important role in connecting the region and facilitating trade. With this funding, we will strengthen our operational capacity and enable the railway to reach its full potential, contributing to sustainable economic growth in Angola and the wider region.”
This upgrade includes modern vehicles, an updated signal system, and comprehensive staff training to address both physical and operational capacity constraints that have historically limited the corridor’s throughput.
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.
This project supports the strategic interests of the United States and its allies by diversifying access to critical minerals outside of traditional Asia-driven routes and reducing dependence on a single source of critical metals for technology, renewable energy, and defense sectors.
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Analysts say infrastructure projects like the Lobito Corridor can generate multi-layered economic benefits. Beyond export revenues, the railway rehabilitation is expected to boost employment in construction, port operations, logistics and ancillary industries while improving access to local transport services.
The corridor also has the potential to create a cluster of mining-related and value-added processing activities in Angola’s interior, promoting industrial development along the route.
DFC CEO Ben Black highlighted that the project is aligned with broader development finance objectives, saying: “This investment builds on the impactful work DFC is already leading along this corridor and reinforces our mission to drive sustainable economic growth and strengthen strategic infrastructure.”
The project aims to balance commercial viability and regional development objectives by combining private management and development assistance financing, a model increasingly being applied in large-scale transport initiatives in Africa.
Lobito Port itself is an important element of the corridor. Historically underutilized due to limited hinterland connectivity and infrastructure constraints, the port will undergo renovation work to accommodate increased cargo volumes and modern processing requirements for bulk mineral exports.
The upgrade will also strengthen Angola’s competitiveness in the global shipping trade environment, especially as demand for copper and cobalt increases against the backdrop of global decarbonization and the transition to electric vehicles.
The project highlights a broader trend in infrastructure development in Africa, where strategic transport corridors are positioned as both economic catalysts and geopolitical assets. The Lobito Corridor’s ability to provide an efficient alternative to routes dominated by China and South Africa will increase Angola’s leverage in negotiations with mining companies and international financial institutions. It also highlights the continent’s increasing integration into global mineral supply chains, with transport efficiency having a direct impact on market competitiveness and the profits governments can secure from their natural resources.
Despite the promise, challenges remain. Effective implementation depends on timely completion of infrastructure works, operational coordination among multiple stakeholders, and integration with customs, digital tracking, and cross-border regulatory frameworks.
Previous regional corridors have experienced delays due to governance bottlenecks, logistical inconsistencies, and maintenance backlogs, highlighting the importance of comprehensive project management and institutional capacity building alongside capital investment.
For Angola and its partners, the Lobito Atlantic Railway represents a concrete opportunity to transform resource wealth into sustainable development outcomes. By efficiently and cost-effectively linking inland mines to international markets, the corridor will strengthen the resilience of Africa’s mineral supply chains, support industrialization efforts and strengthen the continent’s role in global strategic commodity flows.
As the upgrade progresses, LAR’s success will likely be measured not just in cargo volumes, but also in its ability to generate inclusive growth, strengthen regional connectivity, and integrate sustainable practices across its operations.
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