Africa Finance Corporation is in talks with a group of regional and international lenders, including Citigroup, as it seeks to raise between US$3 billion and US$5 billion to finance the Lobito minerals transport corridor, a senior official said.
The Lagos-based institution, which is leading development of the U.S.-backed project, is stepping up efforts to secure funding ahead of a planned fundraising round later this year.
The Lobito corridor is a major rail and logistics network linking copper and cobalt mining regions in central Africa to the Atlantic port of Lobito in Angola. It combines upgrades to existing railway lines with new infrastructure, and is expected to ease export bottlenecks for mineral-rich but landlocked countries such as the Democratic Republic of Congo and Zambia.
AFC deputy director and head of project development and investment Osaruyi Orobosa said the institution is engaging at least ten potential financiers, including commercial banks and development finance institutions.
Among the commercial lenders in discussions are Standard Bank, Absa Group and Ecobank, alongside global players such as Citi.
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“The banks want to come in — everyone wants to come in,” Orobosa said, describing strong interest in the project. He added that current talks are focused on introducing the structure and fundamentals of the corridor to potential investors.
The project is part of a broader strategic push by the United States and its partners to strengthen supply chains for critical minerals used in clean energy technologies, including electric vehicle batteries and renewable power systems.
It also reflects growing competition with China, which has invested heavily in African mining and transport infrastructure over the past two decades.
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In addition to commercial banks, AFC is in discussions with a range of bilateral and multilateral lenders. These include Saudi Export-Import Bank, KfW Development Bank, Export-Import Bank of the United States, U.S. International Development Finance Corporation and Development Bank of Southern Africa.
These institutions are expected to play a key role in structuring the financing, with development lenders likely to take a mix of equity and debt positions, while commercial banks could act as both funders and arrangers.
Some lenders may also coordinate export credit agencies that will support equipment and services tied to the project, Orobosa said.
The Lobito corridor centres on the historic Benguela railway line, which runs from the Angolan coast into the interior and connects to mining regions across the border. Rehabilitation of the line, alongside new links, is expected to significantly cut transport times and costs for mineral exports.
For countries such as the Democratic Republic of Congo — the world’s largest producer of cobalt — improved rail access to the Atlantic could provide an alternative to existing export routes through southern and eastern Africa, which are often congested or costly.
The project is also seen as a catalyst for regional economic integration, with potential spillover benefits for trade, industrialisation and job creation along the corridor.
AFC has previously disclosed talks with governments and development partners on the project, but the involvement of specific commercial lenders had not been made public until now.
Orobosa said the lender aims to formalise financing commitments following the current engagement phase, paving the way for construction to begin once funding is secured.
