About $1 billion mobilised for Lobito Corridor project linking Zambia, Angola, DR Congo

Financiers for the Lobito Corridor project linking Zambia and Angola have announced that almost US$1 billion financing towards the project has so far been mobilised.

This reportedly is the largest single United States (US) and European Union (EU) investment on the African continent in recent years.

DFC’s Deputy Chief Executive Officer, Nisha Biswal, announced in February 2024 that DFC’s Board of Directors had approved a new US$250 million debt facility to the Africa Finance Corporation (AFC).

DFC’s recent funding for AFC will not support the Lobito Atlantic Railway Consortium (LAR) that was upgrading the Benguela line.

AFC was providing advisory support for LAR and DFC separately approved a US$250 million debt facility for AFC to support AFC as it invests in and strengthens infrastructure across the continent.

The US and its partners, which included the European Commission, African Development Bank and Africa Finance Corporation had so far mobilised nearly US$1 billion for the project, according to a statement issued on Monday.

This represents the largest single US and EU investment on the African continent in recent years.

“The Lobito Corridor has been uniquely able to galvanise broad international support, primarily due to its alignment with the energy transition and economic ties to US and European markets.

“As a result, the project serves as a finance and development model for other large-scale African infrastructure projects seeking foreign investment and participation,” according to the statement.

The upcoming invest in African Energy (IAE) forum in Paris is set to unpack this model, as it aimed to connect Africa’s project pipeline with global investor interest.

Organised by Energy Capital & Power, IAE 2024 is an exclusive forum designed to facilitate investment between African energy markets and global investors.

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