DFC Announces Investments Supporting Development Along Lobito Corridor

The United States celebrates the U.S.-Angola relationship with first visit by a U.S. president to the country; DFC announces transactions that further region's development goals, including in the areas of transportation, healthcare, agriculture, and diversification of energy supply chains

WASHINGTON, D.C. - U.S. International Development Finance Corporation CEO Scott Nathan accompanied U.S. President Joseph R. Biden Jr. on a visit to Angola. The U.S. Government announced the commitment of a loan of up to $553 million to upgrade the Lobito Atlantic Railway. The loan will support the rehabilitation and operation of the brownfield mineral port in Lobito and an approximately 1,300-kilometer brownfield rail line in Angola running between the Lobito port to Luau on the Angolan border. The project is expected to expand and protect critical mineral supply chains, increase rail transport capacity, and reduce freight transit times and costs. As President Biden said, "We're building railroad lines from Angola to the Port of Lobito, in Zambia and the DRC, and, ultimately, all the way to the Atlantic -- from the Atlantic Ocean to the Indian Ocean. It'll be the first trans-continental railroad in Africa and the biggest American rail investment outside of America."

"DFC's significant investments along the Lobito Corridor are fostering sustainable economic development and advancing key U.S. strategic interests. Our projects in Angola and across the region reflect the U.S. government's commitment to enhancing infrastructure, promoting the free flow of commerce, and diversifying critical supply chains," said CEO Scott Nathan.

During the visit, there were additional transactions announced that reflect the U.S. Government's commitment to expanding values-driven economic opportunity and improving security in the region. DFC's portfolio of investments in Angola includes more than $700 million committed during the Biden-Harris administration. DFC is exploring a range of investment opportunities along the Lobito Corridor, which extends across Angola, Zambia, and the Democratic Republic of the Congo (DRC).

Additional transactions announced:

• A commitment to provide up to $150 million in political risk insurance for new water treatment plants to expand access to potable water to underserved communities in southern Angola.
• The commitment of a $40 million loan to Africa GreenCo Group Ltd. to help fund a portion of a liquidity facility aimed at supporting GreenCo's energy aggregation and trading business as the first energy trader on the Southern African Power Pool. DFC's proposed support will help to backstop GreenCo's payment obligations to renewable energy independent power producers, supporting investment in renewable energy by facilitating the conclusion of power purchase agreements in the Southern African Development Community, including Zambia, Namibia, and South Africa.
• The commitment of a $13 million equity investment in the African Rivers Fund IV, which will support small and medium-sized businesses in frontier markets in Central and Southern Africa, including Angola, the DRC, and Zambia.
• DFC also committed a $6 million USAID-supported loan portfolio guaranty for Angolan microcredit company Kixicrédito S.A. that will facilitate lending to micro, small, and medium-sized enterprises targeting the agriculture sector, including firms along the Lobito Trans-Africa Corridor.
• A $5 million loan to Community Markets for Conservation Limited in Zambia to expand its food processing business to support the adoption of sustainable, conservation-based practices in rural Zambia.
• The commitment of a $3.4 million technical assistance grant to Pensana to conduct feasibility studies to advance development of a rare earth mine and refining facility in Longonjo, Angola, along the Lobito Corridor. Separately, DFC also committed a $3.2 million DFC technical assistance grant to Chillerton in support of the development of a green copper mining project in Kakosa, Zambia, which is also along the Lobito Corridor.
• A retainer letter with Kabanga Nickel Limited, a subsidiary of Lifezone Metals Limited, to begin due diligence for political risk insurance on the Kabanga Nickel underground nickel-copper-cobalt mine site and the Kahama Hydromet Refinery site in Tanzania. DFC also signed a non-binding letter with Kabanga Nickel Limited that expressed DFC's interest in considering the project for a loan.
• A letter of interest to explore a loan that would support the Carrinho Group, Angola's largest vertically integrated food and agricultural processing company. Loan proceeds would enable the construction of silos and warehouses, and the purchase and installation of cereal dryers and other processing equipment.

Africa is a priority for DFC and is its largest portfolio of any region in the world, with over $13.1 billion in exposure across the continent. Last year alone, DFC committed over $3.2 billion in new financing across 72 transactions in Africa.

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The U.S. International Development Finance Corporation (DFC) partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, infrastructure, agriculture, and small business and financial services. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.