DRC Secures $1.26bn Railway Investment as Tshisekedi Clarifies Dilolo-Sakania Concession
DRC President Félix Tshisekedi has reassured the public that the concession of the Dilolo-Sakania railway line will not privatise the state-owned railway company or create a monopoly, as the government moves to attract major investment to modernise the strategic rail corridor.
Tshisekedi’s remarks follow the signing of a 30-year concession agreement between the DRC government and Mota-Engil Engenharia e Construção Africa S.A. on 26 August in Kinshasa for the rehabilitation, modernisation, operation and maintenance of the railway line.
Stretching approximately 1,004.5 kilometres, the route connects key economic centres including Kolwezi, Tenke and Lubumbashi and forms part of the wider Lobito Corridor, linking the DRC’s mineral-rich Copperbelt with Angola’s Atlantic coast.
The project carries an indicative investment of approximately US$1.258 billion, covering studies, rehabilitation, modernisation, extension, operations and maintenance of the railway infrastructure.
Addressing concerns over the concession, Tshisekedi stressed that the agreement does not amount to the privatisation of the Société Nationale des Chemins de Fer du Congo (SNCC).
He also said the arrangement would not establish a monopoly, with the railway remaining accessible to qualified operators under transparent, fair and non-discriminatory conditions.
Under the agreement, SNCC will retain exclusive rights to passenger transport as well as its existing freight transport rights, allowing the state-owned operator to maintain a role alongside private investment in the infrastructure.
Government to Retain Stake
The DRC government will retain at least a 10% stake in the project company, with representation in its governance structures. It will also receive a 7.5% concession fee based on annual gross revenue.
The concessionaire will assume the financing and traffic risks, while the government will not provide a sovereign guarantee, operating subsidy or minimum-revenue guarantee.
At the end of the 30-year concession, the rehabilitated infrastructure is expected to return to the Congolese state under the terms of the agreement.
Boosting the Lobito Corridor
The government expects the project to generate employment, skills development, technology transfer and opportunities for local businesses, while improving transport safety and reducing logistics costs.
The upgraded railway is also expected to strengthen access to markets and improve the movement of minerals and other goods along the Lobito Corridor.
With the concession now formalised, attention will shift to implementation and whether the investment can deliver a more efficient railway while expanding economic opportunities for the DRC and strengthening its position within the regional mining and logistics network.
