According to Bloomberg, the US International Development Finance Corporation (DFC) is finalizing a financing package of over 500 million US dollars for the Lobito Corridor Railway project. This project aims to transport the key minerals from the Copper Belt in central Africa to the Atlantic coast ports of Angola.
Connor Coleman, the head of the investment department of DFC, told reporters during the sidelines of the African-US Business Summit in Luanda, the capital of Angola, that DFC is "actively negotiating" with various stakeholders including the Angolan government and the Trafigura Group, and "we remain very committed to this project and are making continuous efforts to ensure its implementation."
DFC has for the first time stated that it is currently reviewing the financing of the project for 2023. Coleman declined to comment on the reasons for the delay, but added that the delay has nothing to do with any changes that the Trump administration plans to make to DFC.
Coleman said that DFC "will continue to operate as usual" and will actively participate in key mineral infrastructure, digital and transportation sectors, as well as the energy sector, especially in the African continent.
DFC has committed to providing a $3.4 million technical assistance grant to Panzana Company for its rare earth extraction and processing project in Angola, and is currently negotiating to provide financing for the agricultural manufacturing plant of the Carioni Group through senior secured debt instruments.
The Minister of Economic Coordination of Angola, José de Lima Massano, attributed the delay to the terms of the contract, including the guarantees required by the funding provider.
He said that this is not a state loan. They are working hard to ensure that the necessary conditions are in place to facilitate the rapid advancement of private investment.
The Transport Minister of the Democratic Republic of the Congo, Jean-Pierre Bolba, stated that neighboring Congo (DRC) has also requested DFC's support for a plan to repair a railway line from the country's copper and cobalt mines (located near the town of Kolwezi), which is connected to the corridor.
The government of the Democratic Republic of the Congo has been negotiating with the European Union and the European Investment Bank on a public-private partnership to support the development of this project.
