THE US Development Finance Corporation (DFC) has provided clarity on its recent funding initiatives, specifying that the support extended to the Africa Finance Corporation (AFC) does not encompass the Lobito Atlantic Railway Consortium (LAR) upgrades. Instead, DFC is strategically exploring investment opportunities along the Lobito Corridor as part of the G7 Partnership for Global Infrastructure and Investment (PGI).
The Lobito Corridor, spanning across Angola, Zambia, and the Democratic Republic of the Congo, has drawn DFC’s attention for potential investment endeavours. Among the envisioned projects along this corridor is the Lobito Atlantic Railway, envisioned as an open-access rail line connecting the Lobito Port in Angola to the border of the Democratic Republic of the Congo. This railway project holds the potential to anchor and enhance the connectivity of the Lobito Corridor.
‘While the Lobito Atlantic Railway Consortium (LAR) is not directly supported by DFC’s recent funding for AFC, the corporation remains committed to exploring strategic investments within the Lobito Corridor framework. These initiatives align with DFC’s broader objectives of fostering sustainable infrastructure development and economic growth across the African continent,’ DFC Deputy Press Secretary Christopher Bull told Africa Briefing.
In a separate decision, DFC’s Board of Directors has approved a $250 million loan facility for the Africa Finance Corporation (AFC) to bolster its efforts in advancing high-quality infrastructure projects across Africa. ‘This funding initiative signifies DFC’s ongoing commitment to supporting AFC’s mission of catalysing infrastructure development and economic progress throughout the continent,’ Bull said.
The approved transaction involving the $250 million loan to AFC is currently undergoing review by congressional stakeholders. This process underscores the importance of transparent governance and accountability in DFC’s investment decisions, ensuring alignment with strategic objectives and stakeholder interests.
As DFC continues to navigate its investment portfolio, the corporation remains dedicated to identifying and supporting transformative infrastructure projects that contribute to sustainable development and prosperity across Africa.
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