The Lobito Corridor project is a $6.6 billion, 1,300+ km railway development connecting Angola’s Atlantic Port of Lobito to the mineral-rich DRC and Zambia.
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The long-anticipated Lobito Corridor project has reached a critical stage, with developers now evaluating bids for its construction, marking a significant step forward for one of Southern Africa’s most strategic infrastructure initiatives.
The Lobito Corridor project is a $6.6 billion, 1,300+ km railway development connecting Angola’s Atlantic Port of Lobito to the mineral-rich DRC and Zambia.
Led by the African Development Bank (AfDB), it is entering final EPC evaluations with construction starting on Lots 1 and 2, aiming to facilitate copper/cobalt exports and regional trade.
Speaking on the project’s progress at the conclusion of the "Africa We Build Summit" last week, Samaila Zubairu, President and CEO of the Africa Finance Corporation (AFC), outlined that the development has successfully moved beyond preliminary planning phases and into the procurement stage.
Key preparatory milestones have already been completed, including feasibility studies, environmental and social impact assessments, and the establishment of concession agreements.
“We are currently in the EPC evaluation process,” Zubairu said, referring to Engineering, Procurement and Construction contracts that will determine who builds the project. “Most of the foundational work has been done, and now we are focused on selecting the right contractors.”
The project has been divided into multiple construction segments to streamline delivery. Lot 1A covers the Angolan portion of the corridor, while Lot 1B focuses on the Zambian side. A third component includes additional supporting infrastructure systems critical to the corridor’s operation.
According to Zubairu, nine EPC contractors from various countries recently conducted site visits and are preparing to submit their bids. These submissions are expected in May, with the evaluation process scheduled to conclude by mid-year. The preferred contractors are likely to be selected between July and August.
If timelines hold, Zubairu said construction contracts could be awarded shortly thereafter, with early-stage works potentially commencing by late 2026 or early 2027.
Beyond construction readiness, financing for the Lobito Corridor is also taking shape.
The AFC has already committed approximately $500 million to the project, signaling strong institutional backing. Additional support is coming from the AfDB, which is expected to match this contribution, while the Italian government has pledged $320m.
This blend of multilateral and bilateral financing underscores growing international confidence in the corridor’s economic viability and regional importance.
Equally crucial is the commercial case for the project. For the corridor to operate sustainably, it requires freight volumes of between 2.5 million and 3 million tons annually. Encouragingly, developers report that commitments have already reached 1 million tons, with strong prospects to scale up significantly.
“We have clear visibility to reach up to 5 million tons,” Zubairu noted, suggesting that demand could exceed initial thresholds required for viability.
The Lobito Corridor is expected to play a transformative role in regional trade by linking Zambia’s copperbelt and other mineral-rich areas to Angola’s Atlantic port of Lobito. By providing a more efficient export route, the corridor could reduce logistics costs, improve supply chain reliability, and unlock new economic opportunities across Southern Africa.
According to Caroline Trefault, intermodal Africa manager at global shipping company MSC, the Lobito Corridor offers opportunities to strengthen and enhance market connectivity and provide customers with alternative routing options.
"This corridor represents an infrastructure revival, and a structural shift in Southern Africa’s trade architecture, offering an Atlantic alternative for copper and cobalt exports, reducing transit times to Europe and the Americas, and reinforcing regional integration objectives under AfCFTA," she said.
Many of the minerals are considered critical for the energy transition adding an additional layer of urgency. The corridor is expected to spur investment and be a catalyst for more rapid development and integration of the region.
With strong backing, rising commercial interest, and steady progress through development phases, the Lobito Corridor is increasingly positioned as a cornerstone of regional infrastructure integration.
Viren Sookhun, managing director at Workforce Staffing Africa and Middle East, said routes linking East Africa to global markets can connect resource-rich regions to ports and international trade pathways, but they need further development, investment and coordination to reach full potential.
"Improved rail, road and port infrastructure will allow countries to move resources more efficiently, reduce costs and increase export capacity," Sookhun said.
"With the right infrastructure in place, Africa can strengthen its position in global supply chains and improve access to both Western and Eastern markets."
BUSINESS REPORT
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