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Building Cross-Border Infrastructure to Unlock Critical Mineral Supply Chains

Strategic Railway Investments to Facilitate Trade in Critical Minerals


Context

Some countries with vast reserves of critical minerals (cobalt, copper, and nickel, etc.) face difficulties in transporting them to global markets due to infrastructure challenges. As part of the SMET analysis, this case is identified as an example of strategic cross-border infrastructure investment aimed at unlocking critical mineral supply chains and fostering regional integration.


One example is the Lobito Atlantic Railway, a strategic transportation route that connects the Atlantic coast of Angola to the Democratic Republic of Congo (DRC). A concession has been granted to a private consortium to upgrade and rehabilitate the existing railway line and associated infrastructure, including connections into the DRC’s copperbelt mining region.


A second, separate phase of the project envisages construction of a new 800 km railway line to connect the Lobito Atlantic Railway to Zambia (the Zambia–Lobito Rail Project). This greenfield project is being assessed through a public–private partnership involving the governments of Angola, DRC, and Zambia, with support from international development partners. These investments are expected to play an important role in advancing regional economic integration and development.


The Lobito Atlantic Railway (from Lobito to the DRC) is operated by a European group consisting of Trafigura, Mota-Engil, and Vecturis.[i] The Development Bank of Southern Africa (DBSA) has played a pivotal role in co-arranging funds for this project, approving US$200 million in funding alongside the US International Development Finance Corporation (DFC).[ii]


Challenge

The transportation infrastructure in Southern Africa, particularly in the DRC and Zambia, suffers from the following challenges which the Lobito Corridor seeks to address[iii] [iv]:


  • Ageing and inefficient railway networks: Much of the existing infrastructure has seen limited modernization over the years, with periods of conflict further contributing to deterioration.
  • High costs of transportation: Lack of investment in upgrading railway networks has led to an inefficient and fragmented transportation system, which leads to higher costs of transportation.
  • Lack of regional integration: Weak cross-border infrastructure and underdeveloped regulatory frameworks limit trade.
  • Landlocked mines: Many mineral deposits are in landlocked countries, requiring longer routes via Durban and Dar es Salaam, creating delays and logistical difficulties.[v]


Approach

The Lobito Atlantic Railway project is being advanced through various approaches [vi]:

 

  • Public–private partnership model: Implemented under a concession structure that combines private sector operational capacity with government oversight
  • Phased development: Starting with rehabilitation and operation of existing railway infrastructure, with future plans to extend the corridor through new greenfield lines
  • Blended financing: Mobilizing a mix of development finance and private investment to share risk and attract long-term capital
  • Cross-border collaboration: Jointly developed by multiple governments with support from international partners to ensure coordination across borders
  • Sustainability focus: Designed to align with international standards on transparency, ethical sourcing, and sustainable value chains


Conditions

The Lobito Atlantic Railway helps enhance Southern Africa’s trade efficiency, regional integration, and mineral exports:

 

  • Policy harmonization: The Lobito Corridor Transit Transport Facilitation Agency harmonizes customs, trade policies, and infrastructure strategies across Angola, Zambia, and the DRC.[vii]
  • Infrastructure development: Rehabilitation of railway networks, new freight terminals, modern border infrastructure, and harmonized regulations.[viii]
  • International cooperation: Engagement of global partners such as the US, EU, AfDB, and AFC to integrate Southern Africa into global supply chains and mobilize investment.[ix]


Observed Impact

The development and use of the Lobito Corridor, backed by MoUs signed between international agencies and regional governments, has created conditions to integrate DRC and Zambia into global critical mineral value chains:

 

  • Transportation efficiency: Provides open access logistics at more competitive rates compared to alternatives.
  • Economic development: Facilitates downstream processing, supports local industries, and generates employment.
  • Energy transition: By ensuring faster, cheaper access to cobalt and copper, it contributes to lowering renewable technology costs.


This case shows how strategic infrastructure development can simultaneously advance regional development and global energy transition goals.


What’s Next for the Southern African Region

The Lobito Corridor projects can serve as a blueprint for other SADC countries:


  • Infrastructure investments: Supporting infrastructure must match mineral endowments to unlock full potential.
  • Regional cooperation: Harmonizing rules and policies is key for seamless cross-border trade.
  • Engaging international partners: Development banks and multilateral institutions bring funding, risk mitigation, and best practices.


Experience from this case demonstrates that infrastructure, cooperation, and global partnerships together can unlock critical mineral value chains at scale.


[i] https://www.lobitocorridor.org/history-background

[ii] https://afripoli.org/a-game-changer-in-flux-recent-developments-and-risks-in-the-lobito-corridor

[iii] https://www.undp.org/sites/g/files/zskgke326/files/2024-10/lobito-corridor-policy-brief.up.pdf

[iv] https://www.oecd.org/content/dam/oecd/en/events/2025/04/oecd-emerging-markets-forum/Panel%202_OECD%20EMF%20Background%20Note%20-%20The%20Lobito%20Corridor.pdf

[v] https://www.lobitocorridor.org/history-background

[vi] https://afripoli.org/a-game-changer-in-flux-recent-developments-and-risks-in-the-lobito-corridor

[vii] https://www.undp.org/sites/g/files/zskgke326/files/2024-10/lobito-corridor-policy-brief.up_.pdf

[viii] https://www.oecd.org/content/dam/oecd/en/events/2025/04/oecd-emerging-markets-forum/Panel%202_OECD%20EMF%20Background%20Note%20-%20The%20Lobito%20Corridor.pdf

[ix] https://afripoli.org/a-game-changer-in-flux-recent-developments-and-risks-in-the-lobito-corridor



Solution Area
Transportation Infrastructure