South Africa’s State-owned Development Bank of Southern Africa (DBSA) says its $200-million funding contribution to a larger $753-million loan agreement with the Lobito Atlantic Railway (LAR) concessionaire is in line with its regional integration strategy.

The DBSA funding was confirmed at a signing ceremony in Washington DC on December 17, alongside a $553-million loan from the US International Development Finance Corporation (DFC).

It will support the rehabilitation of a railway link in Angola that connects the mineral terminal at Angola’s Port of Lobito to Luau, which is on the country’s border with the Democratic Republic of Congo (DRC).

The LAR, which is owned by a consortium comprising Trafigura, Mota-Engil and Vecturis, has a 30-year concession for the rail link that will transport critical minerals, such as copper and cobalt, from the mineral-rich areas of the DRC to international markets.

DBSA group executive for transacting Mpho Mokwele described the loan as a “tangible demonstration of our commitment to accelerating the next phase of this transformative project”.

“Our $200-million funding is aligned with our regional integration strategy, which directs towards the rehabilitation of the 1 289 km Benguela Railway line, connecting the Port of Lobito in Angola to the DRC border.

“We do not see the strategic value as simply being the rail line itself, but rather the creation of an efficient intermodal system specifically designed to maximise the throughput capacity of the region,” Mokwele said.

The loan will enable upgrades to the railway’s track infrastructure, workshops, signalling systems and rolling stock.

In a separate statement, LAR CEO Nicholas Fournier said the funding would enable LAR to significantly expand capacity, improve efficiency and strengthen economic connectivity across Angola and the wider region.

The DFC said the brownfield project was expected to increase Lobito’s transportation capacity ten-fold to 4.6-million tons and reduce the cost of transporting critical minerals by up to 30%.

CEO Ben Black said the investment built on the impactful work DFC was already leading along the corridor, reinforcing its mission to drive sustainable economic growth and strengthen strategic infrastructure.