Africa Finance Corporation Closes $753 Million Lobito Corridor Railway Deal in Angola

Africa Finance Corporation Closes $753 Million Lobito Corridor Railway Deal in Angola

July 4, 2026
By Mintesinot Nigussie

Africa Finance Corporation (AFC) has announced the financial close of a 753 million US dollars railway project in Angola, marking a key step in the development of one of the continent’s major cross-border transport corridors linking southern and central Africa.

The financing package supports the Lobito Corridor Railway Project, a 1,300-kilometre line connecting the Port of Lobito in Angola to the border with the Democratic Republic of Congo. The project will involve rehabilitation, upgrading and long-term operation of an existing rail corridor intended to improve regional freight movement and trade connectivity.

Funding for the transaction includes 553 million US dollars from the U.S. International Development Finance Corporation and 200 million US dollars from the Development Bank of Southern Africa. AFC served as co-financial adviser alongside Eaglestone, assisting in structuring and mobilising financing for Lobito Atlantic Railway S.A., the concessionaire responsible for the project.

Lobito Atlantic Railway S.A. is a joint venture between Mota-Engil and Trafigura. The financing milestone follows earlier agreements signed last year and completes the conditions required for financial close.

AFC President and Chief Executive Officer Samaila Zubairu described the project as a strategic infrastructure development aimed at strengthening regional connectivity and supporting industrial growth across Angola and neighbouring markets.

He said the transaction reflects AFC’s role in delivering complex infrastructure projects that contribute to regional integration and facilitate trade flows across Africa.

Eaglestone Founding Partner Nuno Gil said the completion of financial close demonstrates the feasibility of large-scale, multi-lender cross-border infrastructure financing in Sub-Saharan Africa, noting the coordination required among participating institutions and project stakeholders.

The Lobito Corridor is viewed as a strategic transport route designed to improve access to global markets by linking inland mining and production areas with Atlantic port infrastructure, supporting broader economic activity along the corridor.

Source: FSX Business News