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U.S. Finalizes $553 Million Loan to Revamp Angola’s Lobito Rail Corridor

The U.S.-backed financing aims to secure critical mineral supply chains to counter Chinese dominance.

Overview

  • The DFC investment is paired with $200 million from the Development Bank of Southern Africa to expand rail and port capacity.
  • Upgrades include renovating about 1,300 kilometers of track, acquiring new locomotives, and raising Lobito port throughput to 4.6 million metric tons.
  • The corridor is expected to shrink mineral transit from roughly 45 days by road to about 40–50 hours by rail.
  • DFC estimates transport costs for critical minerals will drop by up to 30 percent once the improvements are in place.
  • DFC CEO Ben Black signed the agreement with officials from Angola, DBSA and Trafigura, with reporting noting the Trump administration finalized a Biden-era pledge intended to counter China’s Belt and Road Initiative.