The United States has backed a USD 553 million financing agreement for the rehabilitation of Angola’s Benguela railway line. The loan, provided by the US International Development Finance Corporation (DFC), is intended to expand the capacity of the Lobito Corridor and improve the efficiency of mineral transportation in the region.
The financing will be extended to the Lobito Atlantic Railway consortium, which includes Portugal-based Mota-Engil, commodities trading firm Trafigura, and rail operator Vecturis. In addition, the Development Bank of Southern Africa is contributing a further USD 200 million, creating a comprehensive investment package for the Benguela line.
The Benguela railway connects Angola’s Atlantic port of Lobito to the country’s eastern regions, playing a key role in transporting copper and cobalt from Zambia and the Democratic Republic of the Congo to global markets. Planned upgrades are expected to increase transport capacity and reduce logistics costs.
The Lobito Corridor is being promoted by Western countries as an alternative export route in Africa. Against the backdrop of rising global demand for critical minerals, the project seeks to strengthen regional supply chains and deepen economic cooperation between Africa and Western economies.
According to officials, once completed, the project will move Lobito closer to becoming a regional logistics hub. While improvements to rail infrastructure are expected to support growth in Angola’s non-oil sectors, experts note that long-term success will depend on effective operations and cross-border coordination.
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