Cross-border transport infrastructure project the Lobito Corridor railway project, in Angola, has achieved a successful financial close of $753-million, says infrastructure financing fund the Africa Finance Corporation (AFC).

The transaction, which follows key financing agreements signed late last year, marks a major milestone for regional integration and economic transformation in Africa.

The funding will support the rehabilitation, upgrade and long-term operation of the 1 300 km brownfield rail corridor linking the Port of Lobito, in Angola, to the Democratic Republic of Congo (DRC) border.

The Lobito Atlantic Railway (LAR) is a joint venture between construction and infrastructure company Mota-Engil and metals and minerals logistics company Trafigura.

AFC, as the co-financial adviser on the transaction, and financial services firm Eaglestone led the structuring and mobilisation of financing for LAR as the borrower and concessionaire.

The financing for the regional project includes $553-million from the US International Development Finance Corporation and $200-million from the Development Bank of Southern Africa, the AFC says.

By enabling greater connectivity between key markets, supporting regional trade corridors and strengthening access to global markets, the Lobito Corridor railway project represents a major milestone in advancing regional integration and unlocking Africa’s industrial potential.

“Reaching financial close on the Lobito Corridor railway project is the culmination of years of work and a defining moment for infrastructure finance in sub-Saharan Africa. This transaction shows that complex, multi-lender, cross-border project financing can be structured and successfully closed on the continent,” says Eaglestone founding partner Nuno Gil.

“As one of the continent’s most strategic transport corridors, the project will strengthen regional connectivity, facilitate trade and unlock new opportunities for economic growth across Angola and the wider region,” says AFC president and CEO Samaila Zubairu.