HSBC helps arrange $1.36 billion for Angola’s Luena–Saurimo railway
Angola is working with HSBC to arrange up to $1.36 billion in financing for the Luena–Saurimo railway, a 260 kilometre line that will connect parts of eastern Angola to the country’s existing rail network. HSBC will act as the agent and coordinating arranger for the financing. Export credit agencies will also take part in the
HSBC helps arrange $1.36 billion for Angola’s Luena–Saurimo railway
Angola is working with HSBC to arrange up to $1.36 billion in financing for the Luena–Saurimo railway, a 260 kilometre line that will connect parts of eastern Angola to the country’s existing rail network. HSBC will act as the agent and coordinating arranger for the financing. Export credit agencies will also take part in the proposed funding structure. The railway is already under construction. Angola started work on the project in January.
The money behind the railway
The financing process continues alongside construction. A team from Angola’s Ministry of Transport, HSBC and export credit agencies visited the railway route in July. The visit formed part of the assessment and financing process. The line will run from Luena in Moxico province to Saurimo in Lunda-Sul. It will cover about 260 kilometres and include eight stations and 11 bridges. Construction should take around 60 months.
Connecting eastern Angola to the coast
The railway will connect with the existing Benguela Railway at Luena. This will give freight from eastern Angola access to the Benguela line and a route towards the Lobito port. For companies moving large quantities of goods, rail could offer an alternative to long-distance road transport. That matters in a region where mining and agriculture play an important role in the local economy. Lunda-Sul is also one of Angola’s main diamond-producing areas, while the wider region has deposits of copper, cobalt and manganese.
What happens next
The immediate priority is to finalise the financing package. The railway will need to reach completion before companies can make full use of the new route. Freight volumes will also determine how useful the line becomes for businesses. For Angola, the project will extend rail services further into the eastern part of the country and give businesses there another connection to the wider transport network. The government is also looking at longer rail links into neighbouring countries, including Zambia and the Democratic Republic of Congo. For now, the focus remains on securing the financing and completing the Luena–Saurimo railway.
