In a bold move reshaping Southern Africa’s logistics and geopolitics, the Lobito Corridor is emerging as one of the continent’s most ambitious infrastructure projects. Stretching over 1,300 kilometers, this railway connects the mineral-rich regions of Zambia and the Democratic Republic of Congo (DRC) to Lobito Port in Angola, offering a faster and more secure route to global markets via the Atlantic Ocean.
At the heart of this transformation is the Lobito Atlantic Railway S.A., a joint venture between Trafigura (global commodities trader), Mota-Engil (Portuguese construction giant), and Vecturis SA (Belgian rail operator). Together, they’ve secured a 30-year concession to operate and upgrade the corridor, committing over $555 million in private investment. Additional financing is being negotiated with the U.S. International Development Finance Corporation (DFC) and the Africa Finance Corporation, with support from the G7 and EU under the Partnership for Global Infrastructure and Investment, a strategic counterweight to China’s Belt and Road Initiative.
Construction timelines are aggressive: feeder lines in DRC are already being upgraded, and Zambia’s new segment from Chingola to Luacano is expected to break ground by late 2026. The corridor is projected to handle 1.5 million tonnes of freight annually, drastically reducing transport times from over 50 days by road to under 10 days by rail.
Beyond trade, the Lobito Corridor promises profound impact on local communities creating over 30,000 jobs, boosting agro-processing, and enabling industrial hubs along the route. It’s not just a railway; it’s a lifeline for regional development and a symbol of Africa’s growing leverage in global infrastructure diplomacy.
Where Is the Local Content?
Despite the scale and strategic importance of the Lobito Corridor, local content obligations remain vague. There is little public evidence of binding commitments to local employment quotas, skills transfer, or community ownership in the concession agreement. While the consortium has praised its partnerships with Angola and the DRC, critics argue that the project risks becoming another example of resource extraction without inclusive development.
Impact on Communities
Reports from regions like Lunda Sul Province in Angola paint a troubling picture. The influx of migrant workers from the DRC has led to social tensions, unpaid wages, and substandard living conditions. Local law enforcement is overwhelmed, and crime including theft and sexual violence has reportedly surged. These issues raise serious ethical questions about the project’s human cost and the lack of safeguards for vulnerable populations.
A Face-Off with China
Geopolitically, the Lobito Corridor is seen as a Western counterweight to China’s Belt and Road Initiative. The concession was awarded to the LAR consortium over Chinese bidders, despite China having previously rehabilitated the Benguela Railway through a $1.83 billion oil-for-infrastructure deal. Yet, China remains deeply entrenched in the region, financing the $6 billion Lobito Refinery and dominating cobalt mining in the DRC.
This rivalry underscores a broader strategic shift compelling the U.S. and EU to actively investing in African infrastructure to secure access to critical minerals for the green energy transition. But without robust local content enforcement, the Lobito Corridor risks replicating the very extractive models it claims to replace