African Export-Import Bank (Afreximbank) announced on Monday that it is providing a 175 million euro dual tranche term loan facility to Mota-Engil Africa under its EPC Contract Promotion Initiative to support the company meet its investment obligations for Lobito Atlantic Railway in Angola.
In November 2022, Angola had entered into a concession agreement with a consortium comprising Mota-Engil and its partners in respect of rehabilitation, expansion and development of the Lobito Railway Line, which will connect the Angolan Port City of Lobito to the Tanzanian Port City of Dar es Salaam through the Copperbelt region of Zambia and the Democratic Republic of Congo (DRC).
The concession covers operation and maintenance of infrastructure, the rail freight service, development of a transport training centre and railway workshops, according to an Afreximbank press statement.
The statement said the project will play a critical role in facilitating intra-African trade, investments and industrialisation across the Angola, DRC, Zambia and Tanzania, and provide efficient logistics for exports of minerals as well as other general cargo across the countries.
The agreement was signed by Jose Carlos Nogueira, Group Chief Financial Officer, Mota-Engil Africa and Ayman El-Zoghby, Acting Director Intra-African Trade Bank (Trade, Corporate and Investment Finance), Afreximbank.
(Writing by Marwa Abo Almajd; Editing by Anoop Menon)
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