The Africa Finance Corporation (AFC) has announced a breakthrough in regional infrastructure development with the signing of a US$753 million financing package for the Lobito Atlantic Railway in Angola, marking a pivotal step toward transforming trade and logistics across Southern Africa.
The deal, comprising $553 million from the U.S. International Development Finance Corporation (DFC) and $200 million from the Development Bank of Southern Africa (DBSA), will fund the rehabilitation, upgrade, and operation of the 1,300-kilometer brownfield railway corridor. The line connects Angola’s Atlantic Port of Lobito to the border with the Democratic Republic of Congo (DRC), providing a vital link for exporting critical minerals like copper and cobalt to global markets.
AFC, alongside Eaglestone, served as co-financial adviser to Lobito Atlantic Railway S.A. (LAR), the project’s concessionaire and borrower. A strong consortium of sponsors backs the initiative: Portugal-based multinational Mota-Engil, global commodities trader Trafigura, and international rail operator Vecturis.
Samaila Zubairu, President and CEO of AFC, hailed the deal as a demonstration of the corporation’s expertise in complex cross-border transactions. “This initiative aligns with AFC’s broader development efforts to deliver a transformational transport corridor linking Angola, the DRC, and the wider Southern Africa region,” he said, emphasizing its role in unlocking regional trade and supply-chain resilience. Zubairu also noted the project’s importance for Angola, a key AFC member and shareholder.
Nuno Gil, Founding Partner of Eaglestone, expressed pride in advising on the “landmark” transaction, calling it a key milestone for regional trade in Southern Africa.
Manuel Mota, Deputy CEO of Mota-Engil, described the financing as the culmination of long-term collaboration with Trafigura and the Angolan government. “This strategic agreement will expand transport capacity, reduce transit costs, and open access to the mineral-rich regions of the DRC and Zambia,” he said, praising AFC and Eaglestone’s advisory support.
Richard Holtum, CEO of Trafigura, added: “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.”The project is expected to deliver significant economic benefits, including a tenfold increase in transportation capacity to around 4.6 million metric tonnes per year and a 30% reduction in costs for transporting critical minerals. It will also create jobs, enhance skills development, improve safety standards, and generate long-term opportunities for communities along the corridor.
The partnership between AFC and Angola has grown stronger in recent years, with the country joining as a member state in 2022 and becoming a shareholder in 2025. AFC continues to expand its investments in Angola across various sectors, including infrastructure, energy, and industry, as well as complementary railway projects.
