DFC signs loan for Lobito Atlantic Railway to boost Angola trade

The U.S. International Development Finance Corporation (DFC) has signed a loan agreement for the Lobito Atlantic Railway (LAR), marking a major milestone in U.S.–Africa cooperation. The agreement underscores Washington’s commitment to strategic infrastructure that promotes regional trade and economic growth.

DFC CEO Ben Black was joined at the ceremony by Assistant Secretary of State for Economic, Energy, and Business Affairs Caleb Orr, Angola’s Minister of Transport Ricardo D’Abreu, Development Bank of Southern Africa (DBSA) Group Executive Mpho Mokwele, Trafigura CEO Richard Holtum, and Mota Engil Deputy CEO Manuel Mota.

The loan will fund the rehabilitation and operation of the brownfield mineral port at Lobito and a 1,300-kilometre rail line linking Lobito to Luau on the Angolan border. The investment, alongside DBSA, is expected to raise transport capacity ten-fold to 4.6 million metric tonnes and cut costs for moving critical minerals by up to 30 per cent.

“This loan highlights our commitment to building strong partnerships in Africa,” said DFC CEO Ben Black. “It builds on DFC’s ongoing work along the corridor, driving sustainable economic growth and strengthening infrastructure.”

Minister of Transport Ricardo Viegas D’Abreu described the deal as “a historic milestone for Angola” and said it sets a benchmark for other sectors seeking capital from American institutions. “As the concessionaire of the Lobito Corridor railway and port, LAR will strengthen its operations, ensuring the railway reaches its full potential and supports sustained growth across the region,” he added.

Trafigura CEO Richard Holtum said the railway is “a key domestic and regional asset that will drive economic development and support the movement of critical metals to global markets.”

Mota Engil Deputy CEO Manuel Mota noted that the collaboration with DFC, DBSA, and the Angolan government “expands transport capacity, reduces transit costs, and opens access to the mineral-rich regions of the Democratic Republic of Congo and Zambia. Our participation reflects our commitment to Angola’s national priorities, economic diversification, and regional connectivity.”

Central Africa holds resources critical to U.S. industries, including minerals for technology and defence. DFC investments help secure reliable supply chains and prevent monopolisation by China and other strategic competitors. Africa is the second-largest region in DFC’s portfolio, with cumulative exposure exceeding $10 billion.