Latest News

US agency and consortium sign $553 Million Loan for Angola Railway Reconstruction

The?U.S. The?U.S.

The U.S. Lobito Corridor is a high-profile project that will link copper and cobalt mining to the Atlantic Coast. It's part of Washington’s global push for access to strategic metals, and its efforts against Chinese influence in Africa.

The DFC, under the agreement signed in Washington at a ceremony, will provide funding to the Lobito?Atlantic Railway consortium, which includes Portugal's Mota Engil and commodities trading firms Trafigura, as well as rail firm Vecturis SA.

The deal was announced last year, but only finalised now.

The DFC released a statement that said the agreement "underscores United States commitment to advance strategic Infrastructure that promotes regional Trade, Mutual Economic Growth, and Long-term U.S. Africa Cooperation".

WASHINGTON? TAKES ON CHINA in AFRICA

The?development agency stated that the funds would also be used to support the rehabilitation and operations of an existing minerals port at Lobito. This will increase the transportation capacity by ten times to 4.6 millions metric tons, and reduce the cost to transport critical minerals up to 30%.

LAR, who in 2022 won a contract to operate the Benguela Rail Line for three decades, also stated in the past that it would use the loan to increase rolling stock and train staff.

The Lobito Corridor Project aims to counter the China-backed revival of the Tanzanian-Zambia rail corridor. It will connect copper mines in Zambia and cobalt in the Democratic Republic of the Congo with Angola's Lobito Port on the Atlantic coast by railway.

The project includes the construction of rail lines of 515 km in Zambia, and 315 km in the Democratic Republic of Congo. These will be connected to the existing Benguela line of 1,300 km (808 miles) in Angola.

After completing a feasibility report, the Lagos-based Africa Finance Corporation (AFC), the lead developer for the corridor, requested proposals from contractors to build the Zambian leg of the new rail.

A senior AFC official said in September that the developers planned to "finalise" more financing deals before the end of 2026.

China Civil Engineering Construction Corporation said it would invest $1.4 billion in rehabilitating the rival Tanzania-Zambia rail that uses Tanzanian port to ship minerals. Reporting by Duncan Miriri, Nairobi; Miguel Gomes, Luanda. Editing by Karin Strohecker & Joe Bavier.

(source: Reuters)