Africa Finance Corporation (AFC) aims to reach financial close by the end of 2027 for a major railway project in Zambia, a key component of the strategic Lobito Corridor linking mineral-rich regions to the Atlantic coast.
A senior AFC official said the institution will begin raising debt and equity financing for the Zambia section of the railway in the third quarter of 2026, with construction expected to begin immediately after funding is secured.
The railway is part of a broader U.S.-backed initiative to improve transport infrastructure for critical minerals such as copper and cobalt, while also strengthening supply chains and countering China’s growing influence in Africa’s infrastructure sector.
Once completed, the corridor will connect mining areas in Zambia and the Democratic Republic of the Congo to the port of Lobito in Angola, providing a more efficient export route to global markets.
The Zambia segment alone will involve the construction of approximately 515 kilometres of new railway line, while an additional 315 kilometres will be built in the Democratic Republic of the Congo. These new links will connect to Angola’s existing Benguela railway line, which stretches roughly 1,300 kilometres to the Atlantic coast.
More Read
According to AFC, proposals from construction contractors for the Zambian leg of the project are expected by the end of May, following the completion of feasibility studies.
The project is also seen as a strategic counterweight to China-backed infrastructure developments, including efforts to revitalise the Tanzania-Zambia railway corridor, another key route for transporting minerals from inland Africa to coastal ports.
Backers of the Lobito Corridor secured financing in December for the rehabilitation of Angola’s railway infrastructure, with support from institutions including the U.S. International Development Finance Corporation and the Development Bank of Southern Africa.
Although the total cost of the Zambia rail segment has not yet been disclosed, AFC said it has already signed preliminary agreements with companies to transport around 1 million tonnes of cargo — about half of the minimum volume required to ensure the project’s commercial viability.
Analysts say securing sufficient cargo commitments will be critical to attracting investors and ensuring long-term sustainability of the railway.
The Lobito Corridor is widely viewed as a flagship infrastructure project that could transform regional trade by reducing transport costs, shortening export routes and improving logistics efficiency for mineral exports.
If completed on schedule by 2030, the railway is expected to enhance connectivity across southern and central Africa, supporting economic growth and strengthening global supply chains for energy transition minerals.
However, the project faces challenges common to large-scale infrastructure developments, including financing risks, coordination across multiple countries and the need for stable regulatory and political environments.
Still, with backing from major international partners and growing demand for critical minerals, the Lobito Corridor is positioned as a key strategic investment in Africa’s transport and resource sectors.
More Read
Background to the Lobito Corridor
The Lobito Corridor is a major transnational infrastructure initiative aimed at improving the transportation of critical minerals from central and southern Africa to global markets. It links mining regions in Zambia and the Democratic Republic of the Congo to the Atlantic port of Lobito in Angola.
At the heart of the project is the rehabilitation and expansion of rail infrastructure. Angola’s existing Benguela railway — a 1,300-kilometre line running from the port of Lobito inland — has already been restored after years of disrepair following Angola’s civil war. The current phase focuses on extending rail links eastward into Zambia and the Democratic Republic of the Congo, creating a continuous export corridor.
The corridor is strategically important because it provides a shorter and potentially more efficient route for exporting copper and cobalt — two key minerals used in batteries, electric vehicles and renewable energy technologies. Currently, much of this output is transported via longer routes to ports in southern or eastern Africa, increasing costs and logistical complexity.
The initiative has gained strong backing from Western partners, particularly the United States, which sees the project as part of a broader effort to secure supply chains for critical minerals and reduce reliance on routes and infrastructure linked to China.
In recent years, China has played a dominant role in financing and building infrastructure across Africa, including railways, roads and ports. One notable example is the revival of the Tanzania-Zambia Railway (TAZARA), originally built with Chinese support in the 1970s, which Beijing is now seeking to modernise.
Against this backdrop, the Lobito Corridor is often viewed as a competing model of infrastructure development, backed by a mix of multilateral institutions and Western financing mechanisms.
The Africa Finance Corporation (AFC), headquartered in Lagos, is leading the development of the project. It focuses on mobilising private and institutional capital for large-scale infrastructure across the continent, particularly in energy, transport and natural resources.
Additional support has come from institutions such as the U.S. International Development Finance Corporation and the Development Bank of Southern Africa, which have already financed upgrades to the Angolan section of the railway.
A key challenge for the project is securing sufficient financing and long-term cargo commitments to ensure commercial viability. Rail infrastructure projects typically require high upfront investment and depend on steady freight volumes to generate returns.
If successfully completed, the Lobito Corridor could significantly reshape trade logistics in the region by lowering transport costs, improving export efficiency and enhancing regional integration.
More broadly, the project reflects growing geopolitical competition over Africa’s infrastructure and natural resources, as global powers seek to strengthen economic ties and secure access to materials critical for the energy transition.
