MIGA's US$62.6 million guarantees reduce political and contractual risk around Mota-Engil's equity investment in Lobito Atlantic Railway, strengthening the financial framework supporting the long-term operation, maintenance and modernisation of the 1,300km Angolan section of the Lobito Corridor.
The guarantees reinforce international backing for a corridor being positioned as a major freight route between the DRC Copperbelt and the Port of Lobito. Improved railway capacity and reliability could strengthen regional mineral supply chains, reduce dependence on road transport and support Angola's ambitions to expand its role as a regional logistics and export hub.
- MIGA has issued US$62.6 million in guarantees covering Mota-Engil's equity investment in Lobito Atlantic Railway.
- Lobito Atlantic Railway operates the corridor under a 30-year concession with the Government of Angola.
- The concession covers around 1,300km of railway infrastructure between the Port of Lobito and Luau on the border with the Democratic Republic of Congo.
- Lobito Atlantic Railway is responsible for the operation, management, maintenance and long-term modernisation of the railway, as well as operation of a mineral terminal at the Port of Lobito.
- The project is expected to employ more than 1,600 workers at peak operations, with 97% expected to be Angolan nationals.
- MIGA's political risk insurance covers risks including expropriation, war and civil disturbance, and breach of contract.
The Multilateral Investment Guarantee Agency (MIGA), home of the World Bank Group Guarantee Platform, has issued guarantees to support the modernisation of Angola's Lobito railway corridor, which it says will create jobs and bolster the country's trade and logistics links for critical minerals essential to the energy transition. The guarantees support the operation, maintenance and upgrade of the corridor, which MIGA describes as a cornerstone of trade and critical minerals supply chains in Africa.
MIGA has issued guarantees of US$62.6 million to the Portuguese construction company Mota-Engil to cover its equity investments in Lobito Atlantic Railway, which is operating the Lobito Corridor under a 30-year concession with the government of Angola. The railway is responsible for the operation, management, maintenance and long-term modernisation of around 1,300km of rail infrastructure spanning Angola from the Port of Lobito on the Atlantic coast to Luau on the border with the Democratic Republic of Congo (DRC), as well as the operation of a mineral terminal at the port.
The Lobito Corridor offers one of the shortest and most competitive routes from the DRC's copper and cobalt rich Copperbelt region to international export markets, with transit times MIGA puts significantly lower than current road-based alternatives. Copper and cobalt are essential inputs for clean energy technologies including electric vehicle batteries and energy storage systems, and MIGA expects global demand for both minerals to grow significantly over the coming decades.
The project is expected to directly employ more than 1,600 workers at peak operations, of whom 97 per cent will be Angolan nationals. Around 945 workers are currently employed, including 529 transferred from state-owned rail and port operators, contributing to local skills development across the corridor.
"The Lobito Corridor will play an essential role in creating jobs, strengthening trade, and supporting the global energy transition," said Tsutomu Yamamoto, Managing Director at MIGA. "We are proud to support Mota-Engil and Lobito Atlantic Railway in this landmark project, which will bolster the country's trade and logistics infrastructure and boost Angola's economic competitiveness, while creating jobs for Angolans."
"The partnership with MIGA strengthens the conditions required to deliver an investment of this scale and reflects international confidence in the project and in the execution capabilities of its partners," said Manuel Mota, Vice-CEO of the Mota-Engil Group. "For Mota-Engil, its participation in the Lobito Corridor represents the continuation of an 80-year commitment to Angola and the conviction that strategic projects must be built on strong partnerships, a long-term vision and the creation of sustainable value for the country and the wider region."
MIGA's political risk insurance covers Mota-Engil's equity investments in Lobito Atlantic Railway against the risks of expropriation, war and civil disturbance, and breach of contract.
