The United States has announced that it will invest around $1 billion in a railway line in Africa that will connect the continent’s Copperbelt region in central Africa to a port in Angola on the Atlantic coast.
The so-called Lobito Corridor project will upgrade the 1,300 km rail line connecting Angola to the Democratic Republic of Congo (DRC) and expand it further by constructing another 800 kilometers of rail line linking Zambia to the network.
Besides establishing a trade route of materials to grow the US clean and renewable energies, President Biden’s investment in Africa is an effort to counter China’s investment in the continent.
The Lobito Corridor will serve as a strategic route to source materials from Africa’s Copperbelt region towards western markets via the Angola port to produce electric vehicles, the batteries that power them, and the production of solar panels and wind turbines.
The Investment Monitor reports that the project will begin in 2026 and expects an operational rail between eastern Angola and north-western Zambia by 2028.
A US mining startup, Kabold Metals, also announced that it is considering a partnership with other companies to develop a new $2 billion copper mine in Zambia.
With the rising demands for materials and minerals and increasing competition from China, the US renewed investment in Africa’s infrastructure has never been more timely. According to Bloomberg, Beijing has dominated infrastructure investment in Africa for the past two decades, and the US is only trying to catch up.
According to the article, in October 2023, the US signed a memorandum of understanding with Angola, the Democratic Republic of Congo, Zambia, and the European Commission to kickstart the Lobito project. The African Development Bank signed on and said it would help raise $1.6 billion in financing while contributing about $500 million.
The US investment in the Lobito Corridor project will facilitate the movement of the precious minerals from the pit to the port, strengthening a western route to market for goods and materials necessary to grow clean and renewable energy. At the same time, it will promote sustainable development in a resource-rich region that currently lacks the infrastructure needed to realize its full potential.
Massive infrastructure investment is predicted worldwide over the next few decades. As this article notes, infrastructure investment to support resource development and new economic trends is part of the ongoing investment patterns.
Source:
Dojan, S. (2024, February 9). US to step up investment in Africa’s railway infrastructure. Investment Monitor. Retrieved from https://www.investmentmonitor.ai/news/us-to-step-up-investment-in-africas-railway-infrastructure/
Hill, M. (2023, November 2). The US and EU Plan $1 Billion-Plus Africa Rail Link for Key Minerals. Bloomberg. Retrieved from https://www.bloomberg.com/news/newsletters/2023-11-01/supply-chain-latest-us-lobito-corridor-project-in-africa
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