U.S. rebounds in Angola with USD10B Lobito corridor project
Date
8/25/2024 5:49:37 AM
(MENAFN) Last month, when the U.S. ambassador's motorcade arrived at Angola's Atlantic coast port, dock workers greeted the American flag with enthusiastic cheers and chants in Portuguese, expressing their newfound admiration for the United States. This warm reception is noteworthy given Angola's historical alignment with Moscow during the Cold War. The shift in sentiment is largely attributed to American involvement in financing the Lobito Corridor, a major infrastructure initiative reviving a century-old railway designed to facilitate the transport of essential minerals across a vast region. This ambitious project aims to link the resource-rich Democratic Republic of Congo in central Africa to the Angolan port of Lobito on the western coast.
The Lobito Corridor project is projected to cost at least USD10 billion, encompassing not only the railway but also the development of roads, bridges, telecommunications, energy infrastructure, and agricultural enhancements. The plan includes an extension into Zambia’s Copperbelt province, enhancing regional connectivity. The U.S. engagement in this venture is part of a broader strategy to reassert its influence in Africa, a continent where American presence has waned in comparison to the growing influence of countries like China, Russia, and Turkey. China's extensive USD1 trillion Belt and Road Initiative has granted it a competitive edge in securing infrastructure deals and access to vital minerals needed for defense, renewable energy, and electric vehicles.
Supporters of the Lobito Corridor project highlight its potential to not only benefit Angola but also address the USD170 billion annual infrastructure deficit across Africa, according to estimates from the African Development Bank. The corridor is expected to create a highly efficient route for exporting critical minerals from Central Africa to the U.S. and Europe. Furthermore, a European consortium, including Swiss trading house Trafigura, Portuguese construction group Mota-Engil, and Belgian rail specialist Victoris, has secured a 30-year concession from Lobito Atlantic Railways to manage the rail transport and port operations, marking a significant development in the project’s execution.
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