The $753 million (R12.4 billion) Lobito Corridor railway project in south-central Africa has reached financial close, with funding secured for the rehabilitation, upgrading and long-term operation of the railway, the Africa Finance Corporation (AFC) has announced.
The financing would support the 1 300km railway linking the Port of Lobito in Angola with the Democratic Republic of the Congo (DRC) border, AFC said. The project is being implemented by Lobito Atlantic Railway SA, the concessionaire responsible for operating the railway.
The financing package comprises $553m (R9.1bn) from the US International Development Finance Corporation (DFC) and $200m (R3.3bn) from the Development Bank of Southern Africa (DBSA).
The milestone follows earlier commitments to develop the Lobito Corridor as an alternative export route for copper, cobalt and other minerals from the DRC and Zambia via Angola's Atlantic coast. The corridor is also expected to support the movement of other freight between the region and international markets.
"This milestone reflects AFC's commitment to delivering transformative infrastructure that enhances regional integration and economic resilience," AFC president and chief executive officer Samaila Zubairu said.
"It is one of the continent's most strategic transport corridors, and the project will strengthen regional connectivity, facilitate trade and unlock new opportunities for economic growth across Angola and the wider region."
AFC said the upgraded railway was also expected to strengthen regional supply chains and reduce pressure on road transport.
