The Democratic Republic of Congo (DRC) has officially partnered with Portuguese construction firm Mota-Engil SGPS SA for the complete rehabilitation of the Congolese section of the Lobito Corridor railway. This public-private partnership, endorsed by the DRC government on July 10, is crucial for enhancing the export of critical minerals like copper and cobalt from the landlocked Copperbelt regions of the DRC and Zambia to the Atlantic Ocean via Angola.
Mota-Engil is already part of the Lobito Atlantic Railway consortium, which operates the Angolan portion of the railway, ensuring cross-border operational continuity. The U.S. International Development Finance Corporation (DFC) has expressed strong support for the project, signing a letter of interest for up to $1 billion to back Mota-Engil's efforts in the DRC. This initiative aligns with the strategic partnership between the DRC and the United States, aiming to diversify export routes and reduce reliance on routes through Southern Africa.
The project involves rehabilitating the Dilolo-Kolwezi-Lubumbashi-Sakania railway, a vital artery connecting the DRC's mining regions to the Lobito Corridor. While the agreement has been approved, specific terms regarding investment amounts, contract duration, financing structure, and implementation timelines are yet to be finalized. The DBSA and US DFC have already reached financial close on $786 million in funding for the broader Lobito Corridor railway project, highlighting the significant international backing for this infrastructure development.
This railway project is expected to significantly reduce transport times and costs for critical minerals, bolstering Africa's trade competitiveness and supporting the global energy transition. It aims to handle 50% of copper, 30% of cobalt, and 90% of zinc sold by state-owned companies within five years, transforming the corridor into one of the country's main export routes to international markets. China, through its state-owned China Communications Construction Co. (CCCC), which owns 31% of Mota-Engil, also has a tangential interest in the project's success.
