AFC Secures Financial Close for $753 Million Lobito Rail Project

Nuno Gil, Founding Partner of Eaglestone, described the transaction as a significant achievement for infrastructure finance in Sub-Saharan Africa.

The Africa Finance Corporation (AFC) has announced the financial close of the US$753 million Lobito Corridor Railway Project in Angola, marking a major step forward for one of Africa's most important cross-border transport corridors and strengthening regional trade across Southern and Central Africa. The project will rehabilitate, upgrade, and support the long-term operation of the 1,300-kilometre Lobito Corridor, which connects the Port of Lobito in Angola with the Democratic Republic of the Congo (DRC) border.

AFC served as Co-Financial Adviser alongside Eaglestone, helping structure and mobilise financing for Lobito Atlantic Railway S.A. (LAR), the concessionaire responsible for the project. LAR is a joint venture between Mota-Engil and Trafigura. The financing package includes US$553 million from the U.S. International Development Finance Corporation (DFC) and US$200 million from the Development Bank of Southern Africa (DBSA). The investment is expected to improve freight transport, strengthen supply chains, and enhance access to international markets by modernising one of the continent's most strategically important railway links.

Project expected to boost regional trade

AFC President and Chief Executive Officer Samaila Zubairu said the financial close highlights the corporation's role in delivering complex infrastructure projects that support Africa's industrial development and regional integration. He said the Lobito Corridor is a vital transport route that will improve connectivity between neighbouring countries, facilitate trade, and create new opportunities for economic growth across Angola and the wider region. By improving rail infrastructure between Angola and the DRC, the project is expected to support the movement of minerals, agricultural products, and other goods while strengthening regional logistics and export capacity.

Financing demonstrates growing investor confidence

Nuno Gil, Founding Partner of Eaglestone, described the transaction as a significant achievement for infrastructure finance in Sub-Saharan Africa. He said reaching financial close followed years of work and demonstrated that large, multi-lender, cross-border infrastructure projects can be successfully structured and financed on the continent. He also acknowledged the contributions of Lobito Atlantic Railway, Mota-Engil, and Trafigura in bringing the project to completion.

AFC said the successful financing reinforces its position as a leading partner in developing infrastructure that supports economic transformation across Africa. The corporation believes projects such as the Lobito Corridor will strengthen regional integration, improve trade connectivity, expand access to global markets, and unlock new industrial opportunities across the continent.