The transaction demonstrates that complex, multi-lender infrastructure projects in Sub-Saharan Africa can successfully attract long-term capital when supported by strong sponsors, development finance institutions and robust project structures.

Landmark financing for a strategic trade corridor

The Africa Finance Corporation (AFC) acted as Co-Financial Adviser alongside advisory firm Eaglestone, leading the structuring and mobilisation of financing for Lobito Atlantic Railway S.A. (LAR), the concessionaire responsible for the railway.

The financing package totals US$753 million, comprising:

• US$553 million from the U.S. International Development Finance Corporation (DFC).
• US$200 million from the Development Bank of Southern Africa (DBSA).

LAR is a joint venture between Portuguese engineering group Mota-Engil and global commodities trader Trafigura.

The funding will support the rehabilitation, upgrading and long-term operation of the 1,300-kilometre railway connecting the Port of Lobito on Angola’s Atlantic coast with the border of the Democratic Republic of Congo (DRC).

The corridor is rapidly emerging as one of Africa’s most strategically important export routes for copper and cobalt from the Central African Copperbelt. By providing a shorter Atlantic route to global markets, it has the potential to reduce transport costs, improve export efficiency and strengthen regional trade integration.

AFC President and CEO Samaila Zubairu described the financial close as an important milestone for African infrastructure, noting that the project will enhance regional connectivity, facilitate trade and support industrial development across Angola and neighbouring countries.

A benchmark for African project finance

Beyond its size, the financing stands out because of its structure.

The transaction brings together:

• A U.S. development finance institution.
• A South African development bank.
• African and European project sponsors.
• International financial advisers.

This combination illustrates the growing sophistication of African infrastructure finance and the increasing willingness of development institutions to collaborate on strategically important regional assets.

According to Nuno Gil, founding partner at Eaglestone, the transaction represents years of preparation and demonstrates that complex cross-border infrastructure financings can successfully reach financial close in Africa.

The project also reinforces AFC’s role as one of the continent’s leading infrastructure financiers. Since its establishment, AFC has invested across transport, power, telecommunications, heavy industry and natural resources in 48 member countries. The Lobito Corridor aligns closely with its strategy of financing infrastructure that unlocks industrialisation and regional integration.

Strategic implications for investors

The participation of both DFC and DBSA also reflects growing alignment between African and international development finance institutions around strategic transport corridors.

Their involvement helps:

• Reduce project risk.
• Mobilise long-term capital.
• Encourage future commercial lending.
• Establish financing structures that can be replicated elsewhere.

For institutional investors, the Lobito Corridor railway provides an important proof of concept.

It demonstrates that frontier-market rail infrastructure can attract substantial long-term financing when supported by strong concessions, experienced sponsors and credible development partners.

The next phase will focus on execution. Investors should monitor construction progress, freight volumes, tariff implementation and integration with mining and industrial projects across Angola and the DRC.

Ultimately, these factors will determine not only the commercial success of the Lobito Corridor but also whether it becomes a blueprint for the next generation of African logistics and transport corridors.

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