AFC Underwrites Freight on Zambia-Lobito Railway
Africa Finance Corporation has signed freight underwriting for 2 million tonnes on a planned 830-kilometre rail line linking Zambia to Angola.
Updated on Nov. 4, 2026 in Corporate Finance
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The Africa Finance Corporation has signed freight underwriting for 2 million tonnes on the Zambia-Lobito railway, which it leads as developer. The corporation says it has line of sight to a further 5 million tonnes of freight commitments.
Why it matters
The underwriting moves the 830-kilometre corridor, which would connect Zambia's Copperbelt to the existing Benguela rail network in Angola, closer to commercial viability. Freight commitments are a key input to structuring the financing for large African infrastructure projects.
The corporation has signed underwriting for 2 million tonnes of freight, with line of sight to a further 5 million, on an 830-kilometre line. Contractor selection and financial close dates have not been disclosed.
The players
Africa Finance Corporation
A multilateral development finance institution established in 2007 that serves as lead developer of the Zambia-Lobito railway and reports approximately $20 billion in total assets.
The details
The Africa Finance Corporation, which is lead developer of the Zambia-Lobito railway, is procuring EPC contractors and has completed engineering and technical studies for the line. It is also completing the commercial structuring of the project, with the first phase of its planned Kinshasa MetroKin project and work on the Kinshasa-Matadi corridor running alongside.
Timeline
2007: Africa Finance Corporation is established.
20 to 23 October 2026: AFC announces the freight underwriting at the SARA conference.
2027: The Zambia-Lobito railway is expected to progress toward completing debt and equity financial arrangements.
Market Dynamics
The underwriting extends the Africa Finance Corporation's role from advising on the Lobito Atlantic Railway concession into securing freight demand for the Zambia-Lobito line. Whether freight commitments of this scale can anchor financing for African rail projects will shape how similar corridors are structured.
For investors tracking African infrastructure, the underwriting is an early signal that rail projects may be able to secure committed freight volumes before construction begins. Readers should note that no contractor or financial close date has yet been announced.
The takeaway
Freight commitments are increasingly used to de-risk large African rail projects before financing is complete. Watch for named contractors and a financial close date as the next concrete signals.
Further reading
Explore more on Corporate Finance as financiers structure large cross-border infrastructure deals.
Source note: This article includes information reported by Railwaysafrica.
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