Angola has taken a major step toward strengthening its transport and trade infrastructure after securing $753 million in financing from the United States and South Africa to upgrade the Lobito Atlantic Railway. The deal positions the Lobito Corridor as one of Africa’s most strategic logistics routes, linking the Atlantic Ocean to mineral-rich regions in Central and Southern Africa.
The financing package consists of a $553 million loan from the U.S. International Development Finance Corporation and $200 million from the Development Bank of Southern Africa. The funds will be used to rehabilitate and modernise the railway line running from the Port of Lobito to Luau, near Angola’s eastern border with the Democratic Republic of Congo. Upgrades will also extend to port-related infrastructure to improve cargo handling and export efficiency.
The Lobito Atlantic Railway is operated under a 30-year concession by a consortium that includes global commodities trader Trafigura, Portuguese construction firm Mota-Engil and Belgian rail operator Vecturis. Once completed, the project is expected to significantly increase freight capacity, reduce transit times and lower transport costs along the corridor.
For Angola, the railway upgrade strengthens its ambition to become a regional logistics hub and diversify its economy beyond oil. For neighbouring countries such as the Democratic Republic of Congo and Zambia, the Lobito Corridor offers a shorter and more reliable export route for critical minerals such as copper and cobalt, which are essential for global clean energy and technology supply chains.
The deal also reflects growing international interest in Africa’s infrastructure and strategic mineral corridors. By improving connectivity and efficiency, the Lobito Rail project is expected to boost regional trade, support industrial growth and reinforce Angola’s role in continental and global supply networks.