Angola Lands $753 Million U.S. and South African Backing to Upgrade Strategic Lobito Rail Corridor

Angola has secured a major financing boost for one of Africa’s most strategically significant infrastructure projects, with the Lobito Atlantic Railway (LAR) announcing $753 million in funding from the U.S. International Development Finance Corporation (DFC) and the Development Bank of Southern Africa (DBSA).

The financing will support the rehabilitation and modernisation of the more than 1,300-kilometre Lobito railway corridor, a critical transport artery linking Angola’s Atlantic coast to the mineral-rich Copperbelt of the Democratic Republic of Congo (DRC). Once fully upgraded, the corridor is expected to play a central role in reshaping how Central Africa’s minerals reach global markets.

The deal underscores growing Western and regional interest in African infrastructure tied to critical minerals, as global supply chains seek diversification away from traditional routes and geopolitical risk intensifies.

A Strategic Corridor Gains Fresh Capital

The Lobito railway stretches from the deepwater Port of Lobito on Angola’s coast to Luau, at the border with the DRC. It provides the shortest and most direct rail route between the DRC’s Copperbelt—one of the world’s richest sources of copper and other critical minerals—and international markets.

Under the new financing package, funds will be deployed to upgrade track infrastructure, modernise workshops, install advanced signalling systems, and enhance rolling stock across the corridor. These improvements are aimed at increasing capacity, improving reliability, and reducing transit times for both exports and imports.

For Angola, the investment strengthens its position as a logistics and trade gateway for Central Africa. For the DRC and neighbouring countries, it offers an alternative to longer, costlier export routes through southern or eastern Africa.

Western and Regional Finance Align

The participation of the U.S. International Development Finance Corporation reflects Washington’s broader push to support infrastructure that facilitates access to critical minerals essential for the global energy transition, including copper, cobalt, and related resources used in electric vehicles, renewable energy systems, and advanced electronics.

At the same time, the Development Bank of Southern Africa’s involvement highlights growing regional alignment around trade-enabling infrastructure that can unlock cross-border economic growth.

Together, the two institutions provide not just capital but also a degree of political and financial backing that reduces risk for long-term infrastructure investment in the region.

Infrastructure analysts say the deal positions the Lobito Corridor as a flagship example of how development finance is increasingly being deployed to achieve both economic and strategic objectives.

Boosting Trade and Mineral Exports

LAR said the upgrades will significantly enhance the railway’s capacity, efficiency, and reliability, strengthening its role as a key import-export route for metals and minerals, including copper and other critical resources.

Nicholas Fournier, Chief Executive Officer of Lobito Atlantic Railway, described the financing as a turning point for the project.

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

The railway serves a diverse user base, including multinational mining companies, regional traders, and logistics operators. By offering a more direct route to the Atlantic, it reduces transport costs and bottlenecks that have historically constrained mineral exports from Central Africa.

Why the Lobito Corridor Matters

In recent years, the Lobito Corridor has taken on heightened strategic importance. Governments and companies are increasingly seeking alternative export routes for critical minerals amid rising congestion, regulatory challenges, and geopolitical sensitivities affecting other corridors.

For global markets, the corridor offers a potential solution to one of Africa’s longstanding challenges: getting minerals from landlocked regions to ports efficiently and competitively.

For Angola, the railway represents more than just a transport project. It is a cornerstone of the country’s efforts to diversify its economy beyond oil, attract foreign investment, and position itself as a regional logistics hub.

For the DRC, improved access to the Port of Lobito could significantly enhance export competitiveness, particularly for copper, which remains central to the country’s economy and global decarbonisation efforts.

Beyond Exports: A Dual-Use Trade Route

While much attention is focused on mineral exports, LAR emphasised that the railway also functions as a key import gateway. The corridor facilitates the movement of fuel, agricultural inputs, consumer goods, and industrial equipment into inland markets across Angola and neighbouring countries.

This dual-use role strengthens the railway’s economic impact, supporting not only export-led growth but also domestic and regional trade.

Improved rail infrastructure can lower costs for businesses, reduce road congestion, and improve supply chain reliability—factors that are critical for industrialisation and regional integration.

Economic Development and Regional Integration

The investment is expected to support domestic and regional economic growth, reinforcing the Lobito Corridor’s role as a catalyst for trade and development across sub-Saharan Africa.

By linking ports, mines, and inland markets, the corridor aligns closely with broader African Union goals around regional integration, trade facilitation, and the implementation of the African Continental Free Trade Area (AfCFTA).

For West and Central Africa in particular, the project offers a template for how cross-border infrastructure can unlock value from natural resources while supporting wider economic activity.

A Signal to Investors

The scale and structure of the $753 million financing send a strong signal to private investors. Development finance backing from institutions like the DFC and DBSA often helps crowd in additional capital by reducing perceived political and operational risks.

This could pave the way for further investment along the Lobito Corridor, including logistics hubs, industrial zones, and value-add processing facilities that capture more economic benefits locally.

For African economies seeking to move up the value chain, such infrastructure is a prerequisite for industrial growth.

Conclusion: Infrastructure at the Heart of Africa’s Mineral Future

Angola’s success in securing $753 million in U.S. and South African financing for the Lobito Atlantic Railway marks a significant milestone for regional infrastructure development.

At a time when critical minerals are reshaping global trade and geopolitics, the Lobito Corridor stands out as a strategically vital asset—one that connects Central Africa’s resources to global markets while supporting regional integration and economic diversification.

For Africa, the project underscores a broader lesson: infrastructure that links markets, lowers costs, and attracts long-term capital will be central to turning natural resource wealth into sustained economic development.

Source: The High Street Business