Osaruyi Orobosa-Ogbeide, Deputy Director and Head, Project Development and Investment at the Africa Finance Corporation (AFC), told the Southern African Railways Association (SARA) conference that AFC has signed freight underwriting for 2 million tonnes of commitments on the Zambia-Lobito railway and has line of sight to a further 5 million tonnes. The 830-kilometre railway runs from Zambia’s Copperbelt to the existing Benguela rail network in Angola.
He said the engineering and technical studies have been completed, AFC is procuring the EPC contractors and completing the commercial structuring, and in 2027 the project will progress towards completing financial arrangements on both debt and equity.
- The Africa Finance Corporation (AFC) says it has signed freight underwriting for 2 million tonnes on the Zambia-Lobito railway, for which it is lead developer.
- The 830-kilometre railway runs from Zambia’s Copperbelt to the existing Benguela rail network in Angola.
- AFC has line of sight to a further 5 million tonnes of freight commitments, according to Osaruyi Orobosa-Ogbeide.
- The engineering and technical studies have been completed, and AFC is procuring the EPC contractors and completing the commercial structuring.
- AFC advised on the establishment and fundraising of the Lobito Atlantic Railway concession, which operates the existing line.
- In the Democratic Republic of Congo, AFC is supporting the 25-kilometre first phase of the MetroKin project in Kinshasa and has commenced work on the Kinshasa–Matadi railway corridor.
The Africa Finance Corporation (AFC) has signed freight underwriting for 2 million tonnes of commitments on the Zambia-Lobito railway, for which it is the lead developer, and has line of sight to a further 5 million tonnes, according to Osaruyi Orobosa-Ogbeide, Deputy Director and Head, Project Development and Investment at AFC, who addressed the Southern African Railways Association (SARA) conference, held from 20 to 23 October, on behalf of the corporation, a conference sponsor.
Orobosa-Ogbeide described the project as an 830-kilometre railway from Zambia’s Copperbelt to the existing Benguela rail network in Angola. The engineering and technical studies have been completed, AFC is now procuring the EPC contractors and completing the commercial structuring, and in 2027 the project will progress towards completing financial arrangements on both debt and equity. No contractor was named and no date was given for contract award or financial close.
AFC also advised on the establishment and fundraising of the Lobito Atlantic Railway concession, which operates the existing line. Orobosa-Ogbeide said the experience showed that a new railway depends on its integration with existing networks, efficient terminal and port operations, reliable freight commitments and commercially sustainable operating arrangements.
In the Democratic Republic of Congo, AFC is supporting the MetroKin project in Kinshasa, whose first phase is 25 kilometres, and has commenced work on a new initiative involving the Kinshasa–Matadi railway corridor, described as the link between the country’s principal commercial centre and its Atlantic gateway.
Orobosa-Ogbeide said the main constraint on railway projects is not the availability of capital, citing $4 trillion that exists for infrastructure on the continent, but a shortage of bankable projects at scale. AFC’s approach was summarised as “de-risk, finance, and scale”. Of the continent’s rail needs: “Africa does not lack railway master plans or economically compelling corridors. What we require is a sustained development effort necessary to convert these opportunities into investable assets.”
AFC is a multilateral financial institution established in 2007 with more than $20 billion in total assets, 49 member countries, investments in 36 countries and approximately 200 transactions executed, rated A with a positive outlook by S&P and A3 with a stable outlook by Moody’s.
