Africa Finance Corporation secures $753m for Lobito rail corridor
US and African lenders back upgrade to Lobito Atlantic Railway to boost mineral exports.
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Africa Finance Corporation (AFC) has announced the signing of key financing agreements for the Lobito Atlantic Railway Project in Angola. AFC, alongside Eaglestone, acted as co-financial advisor, to Lobito Atlantic Railway (LAR), the borrower and concessionaire of the 1,300-kilometre brownfield railway corridor.
This transport infrastructure initiative is backed by Mota-Engil, a multinational engineering and construction group with a strong presence across Africa; Trafigura, a commodities trading and logistics company; and Vecturis, an international rail operator.
The signing of the $753 million financing package – consisting of $553 million from the U.S. International Development Finance Corporation (DFC) and $200 million from the Development Bank of Southern Africa (DBSA) – marks a major milestone for the Lobito Atlantic Railway. This regional infrastructure project will rehabilitate, upgrade and operate the 1,300-kilometre rail line connecting the Port of Lobito on Angola’s Atlantic coast to the Democratic Republic of Congo (DRC) border, strengthening regional integration and improving access to global markets.
“The signing of the financing agreements for the Lobito Atlantic Railway demonstrates the strength of AFC’s financial advisory expertise in structuring and advancing complex, cross-border infrastructure transactions of strategic significance. This initiative aligns with AFC’s broader development efforts to deliver a transformational transport corridor linking Angola, the DRC, and the wider Southern Africa region, reinforcing the critical role of integrated rail and port infrastructure in unlocking regional trade, industrial growth and supply-chain resilience”, said Samaila Zubairu, president and CEO of Africa Finance Corporation.
Nuno Gil, founding partner of Eaglestone, said: “We are delighted to have advised LAR in this landmark transport infrastructure transaction that is a key milestone to unlock regional trade and boost economic activity along the Lobito Corridor. The Eaglestone team can be proud in once again delivering world-class services within the project finance advisory industry in Southern Africa.”
Manuel Mota, deputy CEO of Mota-Engil, said: “The signing with DFC, DBSA, and the Government of Angola marks the culmination of long-term collaboration, together with our partner, Trafigura, to advance the Lobito Corridor. This strategic agreement will expand transport capacity, reduce transit costs, and open access to the mineral-rich regions of the Democratic Republic of Congo and Zambia. Mota-Engil’s participation underscores its commitment to deliver an infrastructure that supports Angola’s national priorities, economic diversification, and regional connectivity. This strategic financing not only enables further investment in the project but also reinforces confidence in Angola’s institutional capacity to attract interest for world-class infrastructure initiatives. We appreciate the expert advisory support from AFC and Eaglestone, whose guidance was instrumental in structuring this financing.”
Richard Holtum, CEO of Trafigura, said: “We are pleased that Lobito Atlantic Railway has secured financing from DFC and DBSA to further advance the rehabilitation and operation of the line in Angola. As a shareholder of LAR, we see the railway as a key domestic and regional asset that will drive economic development and support the movement of critical metals to global markets.”
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