Development Bank of Southern Africa commits $200 Million to fund Lobito Corridor Railway Project

The Development Bank of Southern Africa (DBSA), in partnership with the International Development Finance Corporation (DFC), has approved up to US$200 million in funding for the Lobito Corridor Railway Project in Angola. This key infrastructure venture, estimated at around US$786.4 million, seeks to improve regional trade and transport by establishing a reliable railway link from Lobito Port on Angola’s Atlantic coast to the border of the Democratic Republic of Congo (DR Congo).

The DBSA’s broader mission in the transport sector includes investments in essential infrastructure like bridges, roads, railways, airports, and seaports to enhance regional connectivity.

The Lobito Corridor Railway Project involves the financing, construction, operation, and transfer (FBOT) of a 1,289 kilometer (800 mile) railway stretching from Lobito to Negrao and Luau, along with a 28 kilometer (17 mile) branch line from Negrao to Bimbas. This railway is designed to improve cargo transportation, facilitating both international and domestic trade. Following the signing of the Concession Agreement in November 2022, the project is now preparing for construction after securing financial closure.

This funding marks a significant milestone in strengthening Southern Africa’s logistics and transport framework. By backing the Lobito Corridor, DBSA is not only investing in critical infrastructure but also promoting economic growth and job creation in Angola and the DR Congo. The project aligns with the Bank’s goals of sustainable development and fostering regional collaboration.

The railway is expected to transform the region by providing a vital route for the export of copper, cobalt, and other key minerals from the DR Congo to international markets via Lobito Port.

Mpho Mokwele, Group Executive for Transacting at DBSA, emphasized, “Our support for the Lobito Corridor Railway Project aligns with our mission to drive sustainable economic growth and regional integration in Southern Africa, while contributing to Africa’s prosperity.”

Moreover, this railway project is part of a broader effort to support the global energy transition by facilitating the export of minerals essential for renewable energy technologies. The Lobito Corridor is poised to become a leading route for these critical minerals, offering exporters significant cost and time efficiencies.

Mohan Vivekanandan, Group Executive for Coverage at DBSA, added, “This project will not only enhance the economic potential of Angola and the DR Congo but also strengthen connectivity and trade within the Southern African Development Community (SADC).”

DBSA remains committed to financing infrastructure that drives economic growth and improves living conditions in Southern Africa. This investment will help modernize railway infrastructure, including sourcing 50 percent of the necessary wagons from South African manufacturers, thus contributing to local economic development.