Africa Finance Corporation (AFC), a Lagos-based pan-African development finance institution, will finalize a $320 million financing agreement with the Italian government. The funds will support a new transport corridor connecting key mineral-rich regions in Central Africa to the Angolan port of Lobito, AFC’s CEO announced on Thursday.
AFC, owned by African central banks and development lenders, is the main financier behind the U.S.-backed rail and road corridor project. This corridor links the port of Lobito on Angola’s Atlantic coast with mining areas in Zambia and the Democratic Republic of Congo (DRC), facilitating the export of critical minerals such as copper and cobalt.
“The Italian government continues to back this project strongly,” said Samaila Zubairu in an interview with Reuters after releasing AFC’s annual Africa infrastructure report. He added that a formal signing ceremony for Italy’s financial support will take place soon.
In the coming weeks, AFC will also hold a meeting in Rome focused on advancing the Lobito corridor initiative. This project is vital for transporting minerals from the Central African Copperbelt to global markets. It is seen as a strategic move to reduce China’s dominance over copper and cobalt supplies in the region.
Part of the Italian funds will also support AFC’s ongoing lending activities, though Zubairu did not specify the exact allocation. AFC typically raises $2-3 billion annually and has secured over $1 billion so far this year. The corporation plans to raise an additional $1 billion through a syndication facility, which will be launched shortly.
“We have a major syndication coming up,” Zubairu confirmed, without revealing further details.
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