DBSA commits $200m to Lobito Atlantic Railway in Angola

THE Development Bank of Southern Africa (DBSA) has participated in the signing of a landmark loan agreement for the Lobito Atlantic Railway (LAR) Project in Angola, marking a key milestone that clears the way for full implementation of the strategic regional infrastructure initiative.

- SIPHELELE DLUDLA

The DBSA on Thursday said its involvement includes approved senior debt funding of up to $200 million, co-funded alongside $553m from the United States International Development Finance Corporation (DFC). The project is sponsored by Trafigura, Mota-Engil and Vecturis.

The financing agreement formalises international and regional backing for the rehabilitation and development of the Lobito Corridor, a major rail and logistics route linking Angola's Atlantic coast to the Democratic Republic of Congo (DRC).

The loan will enable upgrades to the railway’s track infrastructure, workshops, signalling systems, and rolling stock—enhancing the capacity, efficiency and reliability of the shortest and most direct import-export route between the Copperbelt mining region of the DRC and international markets via the Atlantic Ocean.

DBSA group executive for transacting, Mpho Mokwele, said the conclusion of the finance agreements represents a significant step forward for the project.