The United States has signed a $553 million loan to refurbish an Angolan railway forming part of the strategic Lobito minerals corridor.
The agreement was signed by the U.S. International Development Finance Corporation with a multinational private-sector consortium in Washington on Wednesday.
The Lobito Corridor is designed to transport copper and cobalt from central Africa to Angola’s Atlantic port at Lobito.
Washington views the project as central to securing access to critical minerals while countering China’s growing economic influence across Africa.
Under the deal, financing will be provided to Lobito Atlantic Railway, backed by Portugal’s Mota Engil, Trafigura, and rail operator Vecturis.
South Africa’s Development Bank of Southern Africa will add $200 million, bringing total disclosed funding to more than $750 million.
The financing will support refurbishment of the Benguela railway line, which Lobito Atlantic Railway operates under a 30-year concession.
Funds will also rehabilitate and operate Lobito’s existing minerals port, sharply expanding its handling and export capacity.
Transport capacity is expected to rise tenfold to 4.6 million tonnes, while mineral shipping costs could fall by up to 30%.
The project will link copper mines in Zambia and cobalt fields in the Democratic Republic of Congo to the Atlantic seaboard.
Developers plan to build more than 800 kilometres of new rail in Zambia and Congo, connecting to Angola’s existing network.
Africa Finance Corporation, the project’s lead developer, is seeking contractors for the Zambian rail section.
Further financing agreements are expected by 2026 as construction plans advance.
The Lobito Corridor stands as a flagship of Washington’s renewed economic engagement in Africa’s strategic minerals race.