By: African sustainability matter

The Lobito Atlantic Railway (LAR) in Angola has secured $753 million in financing to rehabilitate and expand the critical 1,300-kilometre Benguela railway, a key link in the Lobito Corridor that connects the copper and cobalt mining regions of the Democratic Republic of the Congo and Zambia to the Atlantic coast. The funding, comprising $553 million from the U.S. Development Finance Corporation (DFC) and $200 million from the Development Bank of Southern Africa (DBSA), will support comprehensive upgrades to the rail line and the Port of Lobito.

The corridor, managed by a consortium of Trafigura, Vecturis SA, and Mota-Engil, is projected to move up to 4.6 million metric tons annually—a tenfold increase in capacity—and reduce transportation costs for critical minerals by approximately 30%. Upgrades will include modern rolling stock, updated signaling systems, and extensive staff training to address historical bottlenecks.

The project's strategic significance extends beyond transport efficiency. For the United States and allied economies, it supports the diversification of critical mineral supply chains, reducing reliance on traditional Asian-dominated routes. For the region, the corridor is expected to stimulate employment, catalyze industrial development along the rail line, and position the area as a more competitive, resilient supplier in the global market.

Angola's Minister of Transport, Dr. Ricardo Viegas D'Abreu, stated that the financing will strengthen operational capacities and contribute to sustained economic growth in Angola and across the broader region. The project represents a model of combining private management with development finance to achieve both commercial viability and regional development goals. Success will depend on effective implementation, coordination among stakeholders, and the integration of digital and regulatory frameworks.