Southern African Bank to Fund Lobito Railway Corridor…initiative to challenge Namibia’s ambition to become Africa’s gateway

 

By: Nghiinomenwa-vali Erastus

 

The Lobito Corridor Railway Project, which will connect the town of Lobito in Angola and its under-construction oil refinery to DRC, has secured US$200 million (N$3,5 billion) in funding.

The funding will come from the Development Bank of Southern Africa (DBSA) and the U.S. International Development Finance Corporation (DFC).

According to a recent update on the DBSA website, the bank approved the funding earlier this month.

The Lobito Corridor Railway Project will follow a finance, build, operate, and transfer (FBOT) model.

It involves upgrading a 1,289 km brownfield railway mainline from Lobito to Negrao and the Luau border, as well as constructing a 28 km railway branch line from Negrao to Bimbas.

Once completed, the Lobito railway corridor is expected to provide serious competition to Namibia’s port, which has traditionally benefited from the re-export trade with the Democratic Republic of Congo (DRC) and Zambia.