LAR supports mining companies, freight operators and regional traders by transporting copper, cobalt and sulphur along the Lobito Corridor.
by Blue Africa News
2025 has been a momentous year for one of Africa’s most important infrastructure projects. This was underlined by a rail financing deal for the project, signed in Washington in mid December. The United States of America (USA), through the International Development Finance Corporation (DFC), along with Development Bank of Southern Africa signed a US$753 million loan agreement for the Lobito Atlantic Railway (LAR) to support the rehabilitation and operation of the Angolan section of the railroad network.
The 1,739km LAR connects Kolwezi in the Democratic Republic of the Congo (DRC) to the Port of Lobito in Angola, “unlocking the fastest, most reliable and secure import and export trade route from the DRC Copperbelt to Africa’s west coast.”
“DFC’s investment, alongside DBSA, in the Lobito Atlantic Railway is expected to increase Lobito’s transportation capacity ten-fold to 4.6 million metric tons as well as reduce the cost of transporting critical minerals by up to 30 percent,” the DFC said in a statement.
“The signing of our loan agreement for the Lobito Atlantic Railway in Angola further characterises president Donald Trump’s commitment to forging strong partnerships and alliances in Africa,” said Ben Black, DFC CEO in the media release distributed on December 17.
The investment, he said, builds on the impactful work DFC is already leading along the corridor, reinforcing its mission to drive sustainable economic growth and strengthen strategic infrastructure.
Dr. Ricardo Viegas D’Abreu, Angola’s Minister of Transport said his country has a long-standing working relationship with DFC, with the US institution having supported several projects in Angola, but noted that the new deal sets an important benchmark for other sectors to access capital from American institutions.
“As the concessionaire of the Lobito Corridor railway and port, LAR plays a vital role in connecting regions and facilitating trade. With this financing, LAR will strengthen its operational capacities, ensuring the railway operates at full potential and contributes to sustained economic growth in Angola and across the broader region,” said the minister.
The Lobito Atlantic Railway Company, a joint venture involving Trafigura, Moto-Engil, and Vecturis South Africa, secured a 30-year concession in July, 2023; to provide railway services on the condition that it would invest US$455 million in Angola and US$100 million in the DRC.
It obtained a concession extendable to an additional 20 to 50 years on condition that the consortium builds a branch line connecting Luacano and Jimbe with a total length of 259 kilometers, which would cost an estimated US$1 billion.
Richard Holtum, Trafigura CEO said they are pleased to learn that Lobito Atlantic Railway has secured financing from DFC and the Development Bank of South Africa (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.”
“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,” said Manuel Mota, Deputy CEO of joint venture partner, Mota-Engil. Moto-Engil has had a significant presence in Angola since 1946 and is engaged in construction projects across Africa and Europe.
The new investment is expected to expand transport capacity, reduce transit costs, and open access to the mineral-rich regions of the DRC and Zambia.
According to Mark-Anthony Johnson, CEO of JIC Holdings, the funding is a major boost to the entire region, since Lobito Corridor is a major African trade route for minerals.
“In essence, this funding is a major boost for the Lobito Corridor aiming to unlock its potential as Africa’s premier trade route for minerals and general cargo, backed by Western nations seeking to build strong African partnerships and secure supply chains,” the expert wrote in a recent LinkedIn post.
The project has seen broad US support across two administrations with widely divergent views on how to engage with Africa. In August, US President Donald Trump described a peace deal for eastern DRC as “a new chapter of hope that will give the US access to DRC’s minerals through logistics on the Lobito Corridor.”
LAR supports mining companies, freight operators and regional traders by transporting copper, cobalt, sulphur, reagents, fuel, agricultural, industrial and commercial products to and from Angola and the DRC. All bulk and container shipments are handled through two state-of-the-art terminals at the Port of Lobito.
Oliver Ochieng, Blue Africa News