Tok Group Consortium Secures $5.33 Billion Loan for Angola Railway Upgrade

A consortium led by Tok Group is planning to finalize a loan agreement with the United States by the end of 2025. The loan, valued at 5.33 billion dollars, is crucial for the upgrade and transformation of the concession area in Angola. This funding, promised by the U.S. development finance institution in 2024, aims to support the renovation of a 1,300-kilometer (800-mile) railway. The project seeks to create a rapid transportation corridor for minerals essential to the global transition to clean energy. The consortium's efforts are part of a broader initiative to enhance infrastructure and facilitate the efficient transport of critical resources, thereby supporting global sustainability goals.

The consortium, which includes Tok Group, Mota-Engil Group, and Victuris, was awarded a 30-year concession to operate the Lobito Atlantic Railway in 2022. This railway will provide a fast route for the export of copper and cobalt from the Democratic Republic of Congo, allowing these resources to be shipped through the Atlantic coast port of Lobito. The new chief executive officer of the railway expressed confidence that the U.S. funding will be secured despite concerns over changes in climate and energy policies under the Trump administration. The CEO emphasized that the transaction is purely commercial and not influenced by geopolitical factors. Both parties are in the final stages of negotiations, with legal teams working out the details to ensure a smooth completion of the deal by the end of the year.

With the consortium's partners committing an additional 5.55 billion dollars in investment, the railway's cargo capacity is expected to double. The goal is to achieve a monthly cargo volume of 40,000 tons in one direction and 80,000 tons in both directions by 2026, maintaining an annual transport capacity of 1.5 million tons throughout the decade. The railway will primarily transport copper and cobalt to Lobito port for international export, while also handling sulfur shipments to mines in the Democratic Republic of Congo and transporting agricultural and industrial products from the port.