The U.S. International Development Finance Corporation (DFC) is nearing completion of financing the Lobito Corridor railway project. The $500 million in financing is expected to expedite the construction of the multi-million-dollar railway project in Africa. Once complete, the Lobito corridor is expected to facilitate in transportation of critical minerals across the continent. It will stretch from Central Africa’s copper belt to Angola’s Atlantic coast. The move comes as the Trump administration reaffirms its support for the ambitious infrastructure project. The project is viewed as a strategic effort to boost U.S. engagement in Africa’s critical minerals sector. Speaking at the U.S.-Africa Business Summit in Luanda on Monday, DFC’s Head of Investment, Conor Coleman provided clarity. He noted that the agency is “actively negotiating” with key stakeholders on the matter. These include the Angolan government and Trafigura group to ensure the deal is finalized.
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The Significance of the Lobito Corridor Railway Project
Africa’s Lobito Corridor Railway project is a major transnational infrastructure and investment initiative to leverage the continent’s resources. The railway line will connect the Atlantic port of Lobito in Angola to the mineral-rich regions of the DRC and Zambia. Through this, it will facilitate for ease of transportation as well as ensure accessibility. The DFC announced earlier in 2023 that it was reviewing financing for the project. However, Coleman declined to elaborate on the cause of delays but noted it was not tied to any administrative changes. He noted that the delays are not influenced by any upcoming policy changes under the Trump administration.
There’s business as usual at the DFC,” Coleman said. “You’ll see us playing a lot in critical minerals infrastructure, both digital and transportation, as well as energy, especially here on the African continent.” Congo’s government is already making plans to launch a tender in November to begin construction on its portion of the corridor. Many are hopeful that the railway will be operational within three years, according to Vice Prime Minister Jean-Pierre Bemba. The nation is one of the mineral-rich countries in the world, especially in cobalt and copper. It also holds enormous lithium reserves, all of which will be transported along the corridor to global markets. The strategic location of the Lobito Corridor offers a direct and efficient export route for these resources. Furthermore, it directly links inland African mines to global markets.
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