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During his visit to Angola, Biden announces $560 million investment in Lobito Corridor

During his state visit to Angola, US President Joe Biden unveiled over $560 million in fresh funding for the Lobito Corridor transport infrastructure initiative.

This Corridor, touted as the largest US-backed infrastructure project on the continent, aims to link the Port of Lobito on Angola’s Atlantic coast with Zambia, focusing on advanced rail infrastructure.

On what is anticipated to be his first and final trip to Africa as president before leaving office in January, Biden praised the progress achieved on the Corridor since its inception under the Partnership for Global Infrastructure and Investment (PGI) at the 2023 G7 Summit, alongside the announcement of the significant funding.

The pledged investments are projected to attract at least $200 million in additional private sector funding for infrastructure projects along the Corridor, according to the White House. This will raise total US investments to over $4 billion—when factoring in international partners, the total exceeds $6 billion. Plans are being discussed to enhance connectivity to Tanzania’s Port of Dar es Salaam, linking the Atlantic and Indian Oceans, which will bolster regional trade and integration across East and Southern Africa.

Addressing a gathering at the Carrinho Food Processing Factory in Benguela, alongside counterparts 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 remarked that the Corridor signifies “investments in all of our futures.”

“Just imagine how transformative this will be for technology, clean energy, agriculture, and food security overall. It’s faster, it’s cleaner, it’s more economical, and most importantly, it’s simply common sense…”

“Crucial minerals essential for electric vehicles and semiconductors can be sourced from here. The clean energy required to power artificial intelligence data centers and fuel economic growth can be developed here. Food necessary to eliminate hunger can be cultivated, transported, and exported throughout this Corridor. In simple terms… nations along the Lobito Corridor have solutions to some of the toughest challenges facing the world.”

Will Trump support the Corridor?

The Corridor is envisioned as an element of the Partnership for Global Infrastructure and Investment, a G7 initiative aimed at countering Chinese influence on the continent. However, Alex Vines, director of the Africa Program at Chatham House, noted that the Corridor serves more than just US geopolitical interests.

“The Lobito project is designed to compete with China. Nevertheless, both Western and Chinese companies will have access to the infrastructure it creates… This could raise questions about its value for Trump, a US president likely to frame his administration largely in terms of competition with Beijing.

“(However) African leaders operating in a multipolar world will not accept being caught in a rivalry between Washington and Beijing. If Trump chooses not to endorse Lobito, investments from the EU and the African Development Bank are likely to persist.”

David Omojomolo, an Africa economist at Capital Economics, believes that “US investment in the project will likely continue under President Trump, as there’s a strong incentive related to securing critical minerals and countering China’s influence.”

AFC provides the majority of new funding

A significant portion of the new commitment for the Corridor is provided by the African Finance Corporation (AFC), whose president and CEO Samaila Zubairu addressed Biden and his African counterparts. The AFC has pledged to allocate up to $500 million in funding for the Lobito-Zambia greenfield rail project, one of the Corridor’s key initiatives, serving as the lead developer.

“This investment underscores our belief in the project’s transformative capability to deliver economic benefits that extend beyond borders. We will rally African pension funds to collaborate with us, ensuring sustainability for future generations.

“Additionally, we will collaborate with other Multilateral Development Banks (MDBs) and financial entities to develop instruments that attract global institutional capital, similar to successful efforts in markets like Japan and the Gulf,” Zubairu stated.

Zubairu also mentioned that the AFC has formed a partnership with critical minerals company KoBold Metals as an anchor client for the railway, assuring a minimum annual transport of 300,000 tons of copper and related freight. KoBold Metals is a California-based startup backed by billionaires Bill Gates and Jeff Bezos.

The AFC has also allocated $100 million to Kobaloni Energy to support Zambia’s inaugural battery-grade copper sulfate production facility, ensuring steady cargo movement along the newly established railway.

“The Lobito Corridor represents more than merely a rail line—it is an economic corridor that offers a lower-cost, lower-carbon route to African integration and global competitiveness,” Zubairu emphasized.

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