DailySun
During his official visit to Angola, US President Joe Biden announced over $560 million in new funding for the Lobito Corridor transport infrastructure project.
This Corridor, regarded as the largest US-supported infrastructure initiative on the continent, is designed to connect the Port of Lobito on Angola’s Atlantic coastline with Zambia, with a focus on enhancing rail infrastructure.
On what is expected to be his first and only trip to Africa as president prior to his departure from office in January, Biden praised the advancements made on the Corridor since its launch under the Partnership for Global Infrastructure and Investment (PGI) during the 2023 G7 Summit, coinciding with the announcement of the significant funding.
The committed investments are anticipated to draw in at least $200 million in additional private sector funding for infrastructure developments along the Corridor, according to the White House. This will elevate total US investments to over $4 billion; when considering contributions from international partners, the overall total surpasses $6 billion. Discussions are underway to improve connectivity to Tanzania’s Port of Dar es Salaam, bridging the Atlantic and Indian Oceans, which will enhance regional trade and integration across East and Southern Africa.
Speaking at the Carrinho Food Processing Factory in Benguela, alongside leaders Joao Lourenço of Angola, Felix Tshisekedi of the Democratic Republic of Congo, and Hakainde Hichilema of Zambia, as well as Tanzania’s Vice President Philip Isdor Mpango, Biden highlighted that the Corridor represents “investments in all of our futures.”
“Just envision the transformational impact this will have on technology, clean energy, agriculture, and overall food security. It’s quicker, it’s cleaner, it’s more cost-effective, and perhaps most importantly, it’s simply common sense…”
“Essential minerals vital for electric vehicles and semiconductors can be sourced from this region. The clean energy necessary to power artificial intelligence data centers and stimulate economic growth can be developed here. Food needed to eradicate hunger can be grown, transported, and shipped throughout this Corridor. In simple terms… the nations along the Lobito Corridor hold the keys to addressing some of the most pressing challenges facing the world.”
Will Trump support the Corridor?
The Corridor is envisioned as part of the Partnership for Global Infrastructure and Investment, a G7 initiative aimed at countering Chinese influence in Africa. However, Alex Vines, director of the Africa Program at Chatham House, pointed out that the Corridor serves broader purposes than solely US geopolitical interests.
“The Lobito project is crafted to compete with China. Nonetheless, both Western and Chinese corporations will have access to the infrastructure it establishes… This could raise questions about its significance for Trump, who is likely to define his presidency primarily in terms of competition with Beijing.
“(However) African leaders functioning in a multipolar world will not accept becoming entangled in a rivalry between Washington and Beijing. If Trump opts not to endorse Lobito, investments from the EU and the African Development Bank are expected to continue.”
David Omojomolo, an Africa economist at Capital Economics, believes that “US investment in the project is likely to persist under President Trump, as there is a substantial incentive linked to securing critical minerals and counteracting China’s influence.”
AFC provides the majority of new funding
A major part of the new commitment for the Corridor is supplied by the African Finance Corporation (AFC), whose president and CEO Samaila Zubairu addressed Biden and the African leaders. The AFC has committed to providing up to $500 million in funding for the Lobito-Zambia greenfield rail project, one of the Corridor’s central initiatives, acting as the lead developer.
“This investment highlights our confidence in the project’s potential to deliver economic advantages that transcend borders. We will mobilize African pension funds to partner with us, ensuring sustainability for future generations.
“Furthermore, we will collaborate with other Multilateral Development Banks (MDBs) and financial institutions to create instruments that attract global institutional capital, akin to successful initiatives in markets like Japan and the Gulf,” Zubairu stated.
Zubairu also mentioned that the AFC has partnered with critical minerals company KoBold Metals as a primary client for the railway, ensuring a minimum annual transport of 300,000 tons of copper and related freight. KoBold Metals is a California-based startup supported by billionaires Bill Gates and Jeff Bezos.
The AFC has allocated $100 million to Kobaloni Energy to assist Zambia’s first battery-grade copper sulfate production facility, guaranteeing consistent cargo transport along the newly established railway.
“The Lobito Corridor stands for more than just a railway—it embodies an economic corridor that provides a lower-cost, lower-carbon route to African integration and global competitiveness,” Zubairu emphasized.
