$753MM Lobito Corridor Railway deal reaches financial close

Africa Finance Corporation (AFC) has announced the successful financial close of the $753 million Lobito Corridor Railway Project in Angola, marking a major milestone for one of Africa’s most significant cross-border transport infrastructure developments.

AFC served as Co-Financial Adviser alongside Eaglestone, supporting the structuring and mobilisation of financing for Lobito Atlantic Railway S.A. (LAR), the project’s concessionaire and joint venture between Mota-Engil and Trafigura.

The financing package includes $553 million from the U.S. International Development Finance Corporation (DFC) and $200 million from the Development Bank of Southern Africa (DBSA). The funds will support the rehabilitation, modernisation, and long-term operation of the 1,300-kilometre rail corridor connecting Angola’s Port of Lobito with the Democratic Republic of Congo (DRC) border.

The project is expected to strengthen regional connectivity, support trade flows, and contribute to economic transformation across Southern and Central Africa.

Samaila Zubairu, President & CEO of Africa Finance Corporation said, “The financial close of the Lobito Corridor Railway Project underscores AFC’s leadership in delivering complex transformational infrastructure that advances Africa’s industrialisation and regional integration. As one of the continent’s most strategic transport corridors, the project will strengthen regional connectivity, facilitate trade, and unlock new opportunities for economic growth across Angola and the wider region.”

Nuno Gil, Founding Partner of Eaglestone, said the financial close of the Lobito Corridor Railway Project represents a significant achievement for infrastructure finance in Sub-Saharan Africa. He highlighted that the successful completion of the complex, multi-lender, cross-border financing demonstrates the potential to structure and deliver major infrastructure projects across the continent.

Gil also acknowledged the collaboration with Africa Finance Corporation (AFC), Lobito Atlantic Railway (LAR), Mota-Engil, and Trafigura, crediting their commitment and partnership in bringing the landmark transaction to completion.

The landmark transaction further strengthens Africa Finance Corporation’s position as a key partner in developing and financing critical infrastructure across Africa. The Lobito Corridor Railway Project is expected to improve connectivity between major markets, support regional trade networks, and enhance access to global markets.

The project represents a significant milestone in advancing regional integration and unlocking Africa’s industrial potential by creating stronger transport links and enabling greater economic opportunities across the continent.