DBSA commits $200m to Lobito Atlantic Railway in Angola

The Development Bank of Southern Africa (DBSA) has participated in the signing of a landmark loan agreement for the Lobito Atlantic Railway (LAR) Project in Angola, marking a key milestone that clears the way for full implementation of the strategic regional infrastructure initiative.

The DBSA on Thursday said its involvement includes approved senior debt funding of up to $200 million, co-funded alongside $553m from the United States International Development Finance Corporation (DFC). The project is sponsored by Trafigura, Mota-Engil and Vecturis.

The financing agreement formalises international and regional backing for the rehabilitation and development of the Lobito Corridor, a major rail and logistics route linking Angola’s Atlantic coast to the Democratic Republic of Congo (DRC).

The loan will enable upgrades to the railway’s track infrastructure, workshops, signalling systems, and rolling stock—enhancing the capacity, efficiency and reliability of the shortest and most direct import-export route between the Copperbelt mining region of the DRC and international markets via the Atlantic Ocean.

DBSA group executive for transacting, Mpho Mokwele, said the conclusion of the finance agreements represents a significant step forward for the project.

“The conclusion of the finance agreements brings our commitment full circle, as it is a tangible demonstration of our commitment to accelerating the next phase of this transformative project,” Mokwele said.

The Lobito Atlantic Railway Project is designed to enhance regional connectivity by establishing an efficient and reliable rail link from the Port of Lobito in Angola to the DRC border.

The 1 289 km Benguela Railway line is expected to strengthen regional trade and transportation networks while improving logistics efficiency across Southern and Central Africa.

The Lobito Railway serves a diverse portfolio of mining companies, regional traders, and business and logistics operators, providing access to global markets for metals and minerals mined in the DRC through the world-class deepwater port of Lobito. 

“This financing from the DFC and DBSA marks a major milestone in our vision to establish the Lobito Corridor as Africa’s premier trade route,” said Nicholas Fournier, CEO of LAR.

“The funding will enable LAR to significantly expand capacity, improve efficiency, and strengthen economic connectivity across Angola and the wider region.”

The corridor is also set to become a highly competitive route for transporting critical minerals such as copper and cobalt from the mineral-rich regions of the DRC to global markets via the Port of Lobito. This is expected to play an important role in securing supply chains for the global energy transition.

“Our $200m funding is aligned with our regional integration strategy, which directs towards the rehabilitation of the Benguela Railway line connecting the Port of Lobito to the DRC border,” Mokwele said.

“We do not see the strategic value as simply being the rail line itself, but rather the creation of an efficient intermodal system specifically designed to maximise the throughput capacity of the region.”

Beyond mineral exports, the project is expected to stimulate economic growth and support increased intra-African trade by reducing transport costs, improving access to markets and strengthening cross-border supply chains.

The DBSA said the partnership with the DFC underscores growing international confidence in Africa’s infrastructure potential, as well as the bank’s commitment to advancing regional integration through development finance.

As Southern Africa positions itself within evolving global trade patterns, the DBSA said the Lobito Atlantic Railway Project stands as testament to what regional cooperation and strategic investment can achieve.

The bank reiterated that it remains focused on supporting infrastructure projects that drive economic growth and improve quality of life across the region, describing the Lobito Corridor as a cornerstone investment in Southern Africa’s connected and prosperous future.

BUSINESS REPORT