In a significant development for Angola’s transport sector, Lobito Atlantic Railway (LAR) has successfully secured $753 million in financing to upgrade the Lobito Corridor. This deal, finalized on December 17, 2025, with the US International Development Financial Corporation (DFC) and the Development Bank of Southern Africa (DBSA), will enable the comprehensive modernization of the 1,289 km Benguela Railway. The railway connects the port of Lobito in Angola to Luau on the border with the Democratic Republic of Congo (DRC), a vital route for transporting minerals from the DRC’s copper mining region to international export markets.
The Concession and Financing Details
LAR holds a 30-year concession to operate and upgrade the Benguela Railway, a key freight corridor for southern Africa. The financing consists of $553 million from DFC and $200 million in senior debt from DBSA, marking a significant investment in the region’s infrastructure. The funding will be used to improve track quality, workshops, signaling systems, and rolling stock. These upgrades are expected to significantly enhance the efficiency, capacity, and reliability of the railway, positioning it as a critical trade route for the region.
LAR is owned by the Lobito Atlantic Holdings (LAH) consortium, which includes major stakeholders such as Trafigura, Mota-Engil, and Vecturis. This strategic partnership plays a crucial role in the modernization of the Lobito Corridor, aligning both public and private sector resources for long-term development goals.
Impact on Freight Capacity and Efficiency
The upgrade to the Lobito Corridor is expected to have a transformative impact on regional trade. According to DFC, the improvements will increase freight capacity tenfold, reaching up to 4.6 million tonnes. Additionally, the cost of transporting minerals along the corridor is projected to drop by as much as 30%, making it a more competitive and efficient trade route for both Angola and the DRC.
The Benguela Railway serves as a vital lifeline for the mining industry in the DRC, which is one of the world’s largest producers of copper and cobalt. By improving the rail infrastructure, LAR aims to reduce transportation costs, which will directly benefit mining companies and facilitate the export of minerals to global markets.
Strategic Significance and Future Prospects
The Lobito Corridor upgrade represents one of the largest infrastructure projects in Angola’s recent history. It is expected to create new job opportunities, stimulate economic growth, and support the development of other critical sectors, including agriculture, manufacturing, and logistics. This project is a testament to Angola’s commitment to modernizing its infrastructure and positioning itself as a key player in Africa’s transportation and trade networks.
Conclusion
The $753 million financing secured by Lobito Atlantic Railway is a transformative development for Angola’s rail infrastructure and the broader southern African economy. The upgrade of the Benguela Railway is set to boost freight capacity, improve the efficiency of mineral transportation, and reduce costs, all of which will enhance the competitiveness of the Lobito Corridor as a trade route. This investment not only marks a significant milestone for Angola but also sets a positive precedent for future infrastructure projects in Africa. With strategic support from international financial institutions like DFC and DBSA, the Lobito Corridor is poised to become a key driver of regional economic growth and development.
