U.S. President Joe Biden is set to unveil significant updates on the Lobito Corridor project during his December visit to Angola. This milestone underscores the importance of the regional infrastructure initiative aimed at linking Angola, the Democratic Republic of Congo (DRC), and Zambia. The corridor is a flagship under the G7-led Partnership for Global Infrastructure and Investment (PGII), an ambitious effort to mobilize $600 billion in infrastructure funding for developing markets by 2027.
In October 2023, a groundbreaking seven-party Memorandum of Understanding (MOU) was signed to accelerate the project’s development. The signatories include the U.S., Angola, Zambia, the DRC, the European Union (EU), the African Development Bank, and the African Finance Corporation (AFC). This collaboration highlights a commitment to fostering regional integration and economic growth.
Dr. Frances Brown, Senior Director for African Affairs at the National Security Council, highlighted the corridor’s transformative potential during a digital briefing. “This isn’t just about a railroad or critical minerals. It’s about strengthening communities, improving access to education, facilitating agricultural trade, and enhancing digital connectivity through transparent and competitive procurement processes,” she explained.
A key element of the initiative is the Millennium Challenge Corporation (MCC) compact signed with Zambia, designed to complement investments in agriculture and rail infrastructure. Helaina R. Matza, Acting Special Coordinator for the PGII, emphasized the progress made, with nearly $5 billion mobilized by the U.S. Development Finance Corporation (DFC) and partners in just 18 months.
Central to the Lobito Corridor is the ongoing refurbishment of the 1,300-kilometer Benguela rail line, connecting the Port of Lobito in Angola to the DRC. Supported by a $550 million DFC loan, the Lobito Atlantic Railway (LAR) joint venture secured a 30-year concession to operate the line in July 2023. Plans are also advancing for an 800-kilometer Greenfield railway extending the Benguela line into Zambia. With a feasibility study completed by the AFC, construction is set to begin in 2026, supported by a $2 million U.S. Trade and Development Agency grant for an Environmental and Social Impact Assessment.
Beyond rail, the initiative encompasses investments of $2.5 billion in solar power, microgrids, and desalination projects. It also aims to expand 5G networks, mobile money platforms, and agribusiness supply chains, focusing on smallholder farmers. These enhancements are expected to reduce transit times across the three countries from 45 days to under a week, with substantial benefits for agribusiness and trade efficiency.
The Lobito Corridor is envisioned as a cornerstone of a larger network of African infrastructure projects, aligning with the African Union’s Agenda 2063 for economic integration. It seeks to connect with other regional initiatives, such as the Central Corridor, reducing trade costs and strengthening supply chains.
Matza highlighted the initiative’s innovative public-private partnership (PPP) model, which prioritizes the needs of African nations while leveraging concessional financing and private investment to expedite progress. “The PPP model demonstrated here can be replicated to bring private partners to the table more quickly,” she said. Future phases of the Lobito Corridor will explore connections to the Indian Ocean and other trade hubs, further enhancing Africa’s economic potential.
This transformative project promises to position the Lobito Corridor as a leading example of how strategic infrastructure investments can drive regional development and global partnerships.
