Angola launches US$1.16bn rail extension to boost Lobito corridor trade

Angola has launched construction of a US$1.16 billion rail extension linking the eastern cities of Luena and Saurimo, a project officials say will strengthen domestic connectivity and support regional trade through the Lobito Corridor.

The Angolan Ministry of Transport said on Tuesday that work had begun on a new 260-kilometre branch line of the Benguela Railway, also known as Caminho de Ferro de Benguela (CFB). The line will connect Luena, the capital of Moxico province, to Saurimo in Lunda-Sul province, a key diamond-producing region.

Authorities say the extension is intended to improve transport infrastructure in Angola’s under-served eastern areas, reducing logistics costs and increasing the movement of goods and passengers. The project is also expected to facilitate cross-border trade by linking inland production zones to export routes.

The contract has been awarded to Brazilian construction firm Odebrecht and forms part of Angola’s National Master Plan for the Transport and Road Infrastructure Sector, as well as the National Railway Network Extension Plan. Both programmes aim to modernise the country’s rail system and expand capacity to meet rising demand for freight and passenger transport.

Once completed, the new branch line will connect to the Lobito Corridor, a strategic rail and logistics route running from the Atlantic port of Lobito to Angola’s eastern border. The corridor is designed to provide landlocked countries in the region with improved access to global markets and has attracted backing from international partners, including the United States and the European Union.

The Lobito Corridor has become a central pillar of Angola’s regional transport strategy, particularly as global demand grows for critical minerals produced in neighbouring countries such as the Democratic Republic of Congo and Zambia. By improving rail links between inland regions and coastal ports, Angolan officials hope to position the country as a key logistics hub in Southern and Central Africa.

Angola has invested heavily in rehabilitating and expanding its rail network in recent years, rebuilding infrastructure damaged during decades of civil war. The Benguela Railway, which was fully restored in 2015, has since played a growing role in domestic transport and cross-border freight services.

Despite these investments, Angola’s economy remains heavily dependent on oil exports, leaving it vulnerable to price swings in global energy markets. The government has repeatedly said that improving transport infrastructure is essential to diversifying the economy, boosting non-oil exports and attracting private investment.

Analysts say the success of the rail extension will depend on timely completion and effective integration with existing logistics networks. If implemented as planned, the project could enhance Angola’s role in regional trade while supporting long-term economic diversification goals.

Share This Article
Leave a Comment

Leave a Reply

Your email address will not be published. Required fields are marked *