The Development Bank of Southern Africa (DBSA) signed a loan agreement for the Lobito Atlantic Railway Project in Angola.
The DBSA approved senior debt funding of up to US$200 million co-funded alongside $553 million from the U.S. International Development Finance Corporation (DFC) with Trafigura, Mota-Engil and Vecturis as project sponsors.
The corridor is expected to transport critical minerals like copper and cobalt from the mineral-rich areas of the DRC to international markets via the Lobito Port.
Mpho Mokwele, Group Executive for Transacting at DBSA, said: “the conclusion of the finance agreements brings our commitment full circle, as it is a tangible demonstration of our commitment to accelerating the next phase of this transformative project.”
Mokwele also said “our US$200 million funding is aligned with our regional integration strategy, which directs towards the rehabilitation of the 1,289 km Benguela Railway line, connecting the Port of Lobito in Angola to the DRC border. We do not see the strategic value as simply being the rail line itself, but rather the creation of an efficient intermodal system specifically designed to maximize the throughput capacity of the region.”
Picture: Supplied