AFC to act as co-financial adviser for Angola's Lobito Atlantic Railway

Africa Finance Corporation (AFC) has announced the signing of key financing agreements for the Lobito Atlantic Railway Project in Angola, acting as co-financial adviser alongside Eaglestone for Lobito Atlantic Railway S.A. (LAR), the concessionaire and borrower for the project.

The $753 million financing package comprises $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 railway corridor linking the Port of Lobito on Angola’s Atlantic coast to the Democratic Republic of Congo (DRC) border.

The Lobito Atlantic Railway is backed by sponsors including Mota-Engil, Trafigura and Vecturis, bringing engineering, commodities logistics and freight rail operations expertise to the project. The initiative aims to rehabilitate, upgrade and operate the existing rail line, strengthening regional integration and improving access to global markets.

According to AFC, the financing is expected to increase Lobito’s transportation capacity tenfold to around 4.6 million metric tonnes per annum and reduce the cost of transporting critical minerals by an estimated 30%. The corridor is seen as a strategic route for moving minerals from the DRC and Zambia to international markets via Angola’s Atlantic ports.

“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,” said Samaila Zubairu, President and CEO of Africa Finance Corporation. He added that the project “aligns with AFC’s broader development efforts to deliver a transformational transport corridor linking Angola, the DRC, and the wider Southern Africa region.”

Zubairu also highlighted the importance of the project for Angola, noting that it reinforces AFC’s long-term commitment to supporting the country’s infrastructure development and economic priorities.

Eaglestone, which co-advised on the transaction, said the deal represents a key step in unlocking regional trade. “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,” said Nuno Gil, Founding Partner of Eaglestone.

From the sponsor side, Mota-Engil described the financing as the outcome of long-term collaboration. “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,” said Manuel Mota, Deputy CEO of Mota-Engil. He added that the agreement would expand transport capacity, reduce transit costs and improve access to mineral-rich regions in the DRC and Zambia.

Trafigura also underlined the railway’s strategic value. “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,” 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 operations, skills development, improved safety standards and long-term economic opportunities for communities along the corridor.

Angola has deepened its relationship with 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 railway developments linked to the Lobito Corridor.