Lobito railway draws $300M debt drawdown as US backs Africa mineral route
What’s the deal? Lobito Atlantic Railway (LAR)Dealroom has a profile for this one. Try Dealroom → has drawn $300 million in debt from a $753 million financing package to expand its US-backed rail corridor moving copper and cobalt out of central Africa. The operator expects to double international cargo volumes next year.
By the numbers: LAR expects to move about 400,000 tons of international cargo this year, targeting roughly 800,000 tons in 2027 as demand grows. About half of that freight is copper and cobalt travelling from the Democratic Republic of Congo to Angola’s Atlantic coast.
What’s the money for? The funds will buy new wagons and containers, repair sections of track, and improve coordination between Angola and the DRC, chief executive officer Nicolas Fournier said. The company is preparing for a second drawdown to fund further investment.
Why now? The Lobito Corridor links Angola’s port of Lobito with mineral-rich areas of the DRC and Zambia, and has become a key route as the US seeks to secure critical minerals and reduce dependence on China. The Angolan section is backed by the US International Development Finance Corporation.
What could go wrong? The corridor remains exposed to disruption. Floods earlier damaged a 1.5km section of track, forcing LAR to truck cargo around the affected area for two months.
The context: The $300 million debt round sits in the roughly 96th percentile of debt deals in Angolan transportation over the trailing 48 months, across a sample of 52 rounds. Wider money is flowing too: last year saw the launch of the $1 billion Lobito Corridor Impact Development Platform, backed by a $100 million joint commitment from businessman Haim Taib and Angola’s Sovereign Wealth FundDealroom has a profile for this one. Try Dealroom →.
The signal: The financing marks how far Western governments will go to build alternatives to Chinese-controlled mineral supply chains — funding physical infrastructure, not just deals. LAR’s July record of 27,000 tons of international cargo suggests the route is starting to deliver on that bet.
Read more: Business Insider
Image credit: Trafigura Images
