Development finance institution the Development Bank of Southern Africa (DBSA) has, alongside the US International Development Finance Corporation (DFC), approved funding of up to $200-million towards the Lobito Corridor Railway project, in Angola.

The funding will support the construction and upgrading of the railway infrastructure, including the procurement of 50% of the required wagons from a South African local manufacturing company.

The project, valued at about $786.4-million, aims to enhance regional trade and transportation networks by providing an efficient and reliable railway connection from the Lobito port on Angola’s Atlantic coast to the border with the Democratic Republic of Congo (DRC).

The DBSA’s function within the transport sector is to pursue infrastructure investment for projects tailored for the development of bridges, roads, bus stations, railways, terminals, airports, seaports, border ports and more.

The Lobito project entails the finance, build, operate and transfer of a 1 289 km brownfield railway main line from Lobito to Negrao and the Luau border, as well as a 28 km railway branch line from Negrao to Bimbas.

The project is aimed at boosting cargo transport, allowing large flows of international goods in transit and national goods in internal circulation.

The concession agreement for the Lobito Corridor Railway project was signed in November 2022, and construction is expected to take place imminently following financial close.

The funding of this project is highlighted as an important step towards improving the logistics framework in Southern Africa.

By supporting the Lobito Corridor, DBSA will be investing in critical infrastructure and fostering economic opportunities and job creation in both Angola and the DRC, it says in a statement.

The project aligns with the commitment to sustainable development and regional cooperation.

This project is expected to provide a critical link for the transport of copper, cobalt and other essential goods from the mineral-rich areas of the DRC to international markets via the Lobito port.

The railway line is part of a broader strategy to support the energy transition by facilitating the export of critical minerals needed for renewable-energy technologies.

“Our support for the Lobito Corridor Railway project aligns with our mission to drive sustainable economic growth and regional integration in Southern Africa, not forgetting building Africa’s prosperity,” says DBSA transacting group executive Mpho Mokwele.