DFC and DBSA Jointly Provide $753M Financing Package to Upgrade Lobito Corridor
On December 17, 2025, the US International Development Finance Corporation (DFC) held a signing ceremony in Washington, DC, to mark the financial close of a USD 553 million loan facility for the benefit of Lobito Atlantic Railway (LAR) company. As part of the same deal to upgrade the #LobitoCorridor Railway, the Development Bank of South Africa (DBSA) is also participating in the financing by providing another USD 200 million to LAR.
In addition to DFC CEO Ben Black, US Assistant State Secretary Caleb Orr, Angola’s Transport Minister Ricardo d’Abreu, Development Bank of South Africa (DBSA) CEO Mpho Mokwele, Trafigura CEO Richard Holtum, and Mota Engil Deputy CEO Manuel Mota attended the ceremony.
“The signing of our loan agreement for the Lobito Atlantic Railway in Angola further characterizes President Trump’s commitment to forging strong partnerships and alliances in Africa. This investment builds on the impactful work DFC is already leading along the corridor, reinforcing its mission to drive sustainable economic growth and strengthen strategic infrastructure.”
DFC CEO Ben Black
The Lobito Atlantic Railway consortium is basically a joint venture between Trafigura (49.5%) and Mota Engil (49.5%). Vecturis holds a small 1% share and provides operational expertise for the rail services. The Government of Angola awarded LAR a concession for 30 years for the operation and maintenance (O&M) of the Lobito-Benguela Railway. The railway stretch connects the seaport of Lobito to the town of Luau near the border between Angola and the Democratic Republic of Congo (DRC).
“The signing of this financing agreement between DFC and Lobito Atlantic Railway represents a historic milestone for Angola. While DFC has previously supported projects in the country, this financing stands out for its unprecedented scale and strategic significance. It sets an important benchmark for other sectors to access capital from American institutions.”
Angola Transport Minster Ricardo d’Abreu
The funds will go mostly toward upgrading the seaport and railway line, as well as the procurement of rolling stock. In so doing, LAR targets to multiply the freight capacity of 4.6 million tonnes by 10 times. Thanks to gains in economies of scale and operational efficiencies, the transportation costs is projected to be reduced by 30%.
The DRC is rich in copper and cobalt, which are #CriticalMinerals essential to the defense and #hitech industries. DFC’s involvement thus contributes to secure supply chains to strategic resources and seeks to break the dominance of any one player. Currently, Africa is the 2nd region in terms of the level of financing support from the DFC, which has a total portfolio exposure exceeding USD 10 billion for the emerging continent.
The Africa Finance Corporation (AFC) is also in talks with #LAR to extend the #LobitoCorridor Railway into DRC and Zambia. In September 2025, China also signed the agreement with Zambia to finance the rehabilitation of #TAZARA to the tune of USD 1.4 billion.