At a Glance
- DBSA commits $200 million to the Lobito Corridor, enhancing regional trade and integration.
- Funding rehabilitates Angola’s Benguela Railway, boosting copper and cobalt exports.
- The project expands freight capacity tenfold, cutting mineral transport costs up to 30%.
Development Bank of Southern Africa, a government-owned institution, has committed $200 million to a landmark $753 million financing package for the Lobito Corridor, underscoring a renewed push to strengthen regional integration, trade logistics and critical minerals exports across Southern and Central Africa.
The funding supports the rehabilitation of Angola’s Benguela Railway, a strategic rail artery linking the Port of Lobito to the Democratic Republic of Congo (DRC) border.
The DBSA investment forms part of a broader loan agreement signed in Washington, DC, on December 17, alongside a $553 million facility from the U.S. International Development Finance Corporation (DFC).
Lobito Rail reshapes Africa’s critical minerals trade
Together, the financing backs the Lobito Atlantic Railway (LAR) concession, one of Africa’s most closely watched infrastructure projects tied to global supply chains for copper and cobalt.
The railway connects Angola’s Atlantic coast to mineral-rich regions of the DRC, offering an alternative export route for critical minerals used in electric vehicles, renewable energy and advanced manufacturing. LAR is operated under a 30-year concession by a consortium comprising Trafigura, Mota-Engil and Vecturis.
DBSA said its funding aligns with its regional integration strategy, which prioritizes cross-border infrastructure that lowers transport costs, improves trade efficiency and supports industrial development.
The project targets the rehabilitation of the 1,289-kilometer Benguela Railway line, stretching from the Port of Lobito to Luau on the DRC border.
Investment boosts freight, trade across central Africa
“This investment represents a tangible commitment to advancing a transformative regional logistics corridor,” said Mpho Mokwele, DBSA group executive for transacting.
He noted that the strategic value extends beyond rail infrastructure to the development of an integrated, high-capacity intermodal transport system designed to unlock economic growth across the region.
The loan will finance upgrades to track infrastructure, signalling systems, workshops and rolling stock, improving safety, reliability and freight volumes along the corridor.
Once completed, the project is expected to significantly boost the movement of copper and cobalt from Central Africa to international markets.
LAR Chief Executive Officer Nicholas Fournier said the financing would allow the company to expand capacity, enhance operational efficiency and deepen economic connectivity across Angola and neighboring countries.
DBSA mobilizes capital for critical infrastructure
The DFC described the project as a brownfield investment with outsized impact. It is expected to increase Lobito’s transport capacity tenfold to about 4.6 million tons annually and cut the cost of moving critical minerals by as much as 30%.
DFC Chief Executive Officer Ben Black said the investment builds on U.S. efforts to support resilient supply chains and strategic infrastructure in Africa.
Founded in 1983, DBSA is a government-owned development finance institution with a mandate to promote economic growth, sustainable infrastructure and regional integration across the African continent.
The Lobito Corridor financing reinforces its goal of mobilizing capital for projects that strengthen trade, unlock private investment and support Africa’s role in global critical minerals markets.
