The 800-kilometer greenfield railway project, part of the Lobito Corridor initiative, is nearing the completion of its feasibility study. This extension aims to connect the existing Lobito railway from northern Zambia to eastern Angola, marking the second phase of the initiative.
The feasibility study, commissioned at a cost of $10 million, comes after a significant Memorandum of Understanding (MOU) was signed in October 2023. This seven-party MOU included the United States, the African Development Bank (AfDB), the Africa Finance Corporation (AFC), the European Union (EU), Angola, the Democratic Republic of Congo (DRC), and Zambia, all working together to advance the Lobito Corridor project.
“Feasibility is well underway,” confirmed Helaina R. Matza, Acting Special Coordinator of the Office of the U.S. Special Coordinator for the Partnership for Global Infrastructure and Investment (PGI), during a digital press briefing on the Lobito Corridor. She emphasized that the completion of the feasibility study will provide a clearer understanding of what is needed to close any identified viability gaps.
This railway extension forms Phase 2 of the Lobito Corridor initiative. Phase 1, completed and operational since January 2024, involved the upgrade of a 1,300-kilometer railway line connecting the Port of Lobito on Angola’s Atlantic coast to the DRC. The Lobito Atlantic Railway (LAR) consortium managed this upgrade under a 30-year concession.
During the briefing, Matza highlighted several key financial commitments to the project, including $500 million from the AfDB, $320 million from Italy, and an additional $250 million from the United States International Development Finance Corporation (DFC) to support the AFC’s efforts. “We are beginning to bring together other lenders and supporters, and are exploring ways to potentially pre-book capacity on this rail to make the deal as commercial as possible, with the support needed to reach completion,” she explained.
Following the feasibility study’s completion, further fundraising efforts may be initiated, focusing on securing equity and project debt. The ultimate goal, as previously indicated by Matza, is to complete the railway, which is estimated to cost over $1 billion, within five years.
The Lobito Corridor is a flagship economic initiative under the Partnership for Global Infrastructure and Investment (PGI), launched by President Biden at the G7 Summit in Japan in May 2023.
