The Development Bank of Southern Africa (DBSA) with its financing partner, the U.S. International Development Finance Corporation (DFC) have reached financial close on USD 786 million in the landmark Lobito Corridor Railway Project, following signing of the financing agreements late last year.
The project is a joint venture between Mota-Engil and Trafigura, where AFC acted as Co-Financial Adviser on this transaction, alongside Eaglestone, leading on the structuring and capital raising process for the Borrower and Concessionaire, Lobito Atlantic Railway S.A. (LAR).“The Lobito Corridor strengthens Africa’s trade competitiveness while supporting the global energy transition. By improving access to international markets, reducing transport costs and transit times. The project will unlock economic opportunities across the region and reinforce the role of infrastructure as a catalyst for sustainable development,” says Mpho Mokwele, Group Executive Coverage and Origination, at the DBSA.The Lobito Railway Corridor is one of the most important infrastructure projects in Southern Africa due to its physical and economic regional integration role within SADC. It supports the rehabilitation, upgrade and long-term operation of the railway while linking the Copperbelt regions of the Democratic Republic of Congo and Zambia to the Port of Lobito in Angola, providing a western export gateway to the Atlantic Ocean for the two landlocked countries.
The project is a strategic regional infrastructure asset for exporting critical minerals, including copper and cobalt. Supporting the Lobito Corridor reinforces the DBSA’s commitment to building integrated regional economies through enhanced trade and cross-border connectivity, a mandate under SADC and the African Continental Free Trade Area (AfCFTA).
As an operational brownfield railway, the project benefits from an established track record, with the investment focused on increasing capacity, improving efficiency and expanding cross-border freight movement. The upgraded corridor is also expected to remove approximately 5,000 heavy-duty trucks from regional roads, reducing emissions, easing congestion and improving road safety. The project is therefore aligned with the Bank’s strategy to accelerate industrialisation and regional value chains. The Lobito Railway Corridor project showcases how the DBSA moves beyond finance to catalyse transformative infrastructure that unlocks investments, creates opportunities and delivers measurable development impact.
