Mota-Engil gets USD 62.6 million from Multilateral Investment Guarantee Agency for the Lobito Corridor
The Multilateral Investment Guarantee Agency has issued guarantees to support the modernization of Angola’s Lobito railway corridor, creating jobs and bolstering the country’s trade and logistics links for critical minerals essential to the energy transition.
The Multilateral Investment Guarantee Agency (MIGA) happens to be the home of the World Bank Group Guarantee Platform.
MIGA has issued guarantees of US$62.6 million to Portuguese construction company Mota-Engil to cover its equity investments in Lobito Atlantic Railway.
Mota-Engil is operating the Lobito Corridor under a 30-year concession with the government of Angola.
The railway is responsible for the operation, management, maintenance and long-term modernization of around 1,300 kilometers of rail infrastructure spanning Angola from the Port of Lobito on the Atlantic coast to Luau on the border with the DR Congo, as well as the operation of a mineral terminal at the port.
The Lobito Corridor offers one of the shortest and most competitive routes from the DR Congo’s Copperbelt region which is rich in copper and cobalt to international export markets, with transit times significantly lower than current road-based alternatives.
Copper and cobalt are essential inputs for clean energy technologies including electric vehicle batteries and energy-storage systems, and global demand for both minerals is expected to grow significantly over the coming decades.
The project is expected to directly employ more than 1,600 workers at peak operations, of whom 97 percent will be Angolan nationals.
Around 945 workers are currently employed, including 529 transferred from state-owned rail and port operators, contributing to local skills development across the corridor.
“The Lobito Corridor will play an essential role in creating jobs, strengthening trade, and supporting the global energy transition,” said Tsutomu Yamamoto, Managing Director at MIGA.
“We are proud to support Mota-Engil and Lobito Atlantic Railway in this landmark project, which will bolster the country’s trade and logistics infrastructure and boost Angola’s economic competitiveness, while creating jobs for Angolans.”
“The partnership with MIGA strengthens the conditions required to deliver an investment of this scale and reflects international confidence in the project and in the execution capabilities of its partners,” said Manuel Mota, Vice-CEO of the Mota-Engil Group.
“For Mota-Engil, its participation in the Lobito Corridor represents the continuation of an 80-year commitment to Angola and the conviction that strategic projects must be built on strong partnerships, a long-term vision and the creation of sustainable value for the country and the wider region.”
MIGA’s political risk insurance will cover Mota-Engil’s equity investments in Lobito Atlantic Railway against the risks of expropriation, war and civil disturbance, and breach of contract.
The Mota-Engil Group
With an 80-year history shaped by innovation, entrepreneurship and a constant drive to explore new horizons, the Mota-Engil Group is today a leading multinational company operating across Engineering and Construction, Environment, Industrial Engineering Services, Energy, Capital and Mining.
A market leader in Portugal and one of Europe’s largest construction groups, Mota-Engil is currently present in 23 countries across three regions — Europe, Africa and Latin America.
Guided by an integrated strategic vision, the Group remains committed to strengthening its global presence and becoming increasingly innovative, competitive and sustainable.