US Backs Angola’s Lobito Rail Corridor with $2.1 Billion Funding to Counter China Influence in Africa

The US is investing heavily in the Lobito rail corridor, which links Angola’s Atlantic coast to the Democratic Republic of Congo (DRC) and Zambia. The goal is to secure access to critical minerals like copper and cobalt, which are essential for electric vehicles and the energy transition away from fossil fuels.

Revitalized by a Trafigura-led consortium with US support, the 1,100-mile (780km) railway now delivers minerals in less than a week, down from over a month.

A feasibility study and the signing of the concession agreement is also complete for the 780km greenfield railway connecting the Lobito rail line in Luacano, Angola, to the existing railway line in Chingola, Zambia.

The African Finance Corporation (AFC), the lead developer of the Zambia-Lobito railway, signed a concession agreement with the governments of Zambia and Angola to develop and operate the rail on the sidelines of the UN General Assembly in New York City.

The Biden administration has pledged $553 million to the project, alongside $1.6 billion for a new 500-mile line connecting Zambia’s copper belt to Lobito, bypassing the DRC.

This initiative counters China, which dominates mineral production in the region and has heavily invested in alternate routes.

The US has committed nearly $5 billion to projects along the corridor, including agriculture and energy, while Western companies like KoBold Metals and Barrick Gold are expanding operations in Zambia.

Also Read: Lobito Atlantic Railway Exports First Copper to US From DRC

The Lobito corridor indicates the competition for Africa’s resources. The DRC and Zambia hold 10% of global copper reserves and most of the world’s cobalt.

While Chinese firms dominate production, the US aims to reduce supply chain dependence on China.

Investments in the rail corridor represent a strategic push to secure critical minerals and counter Beijing’s influence, with bipartisan support ensuring continuity despite leadership changes in Washington.

Tanzania Joins the Corridor

During the Assembly, US Secretary of state Antony Blinken said Tanzania would be joining the mega rail road project and announced a $2 million grant package from the US Trade and Development Agency for technical assistance.

“The Lobito Corridor – connecting Angola, Zambia, and the Democratic Republic of Congo – is one of our biggest projects. The ultimate goal is infrastructure connecting the Atlantic to the Indian Ocean,” Mr Blinken said.

“Today, Tanzania is also joining conversations about the Lobito Corridor for the first time – something we very much welcome.”

The expansion of the Lobito Corridor to include Tanzania is meant to allow the project to run all the way to the Indian Ocean to facilitate transportation of nickel and other minerals.

Blinken said that so far, the United States and its partners have committed over $4 billion to Lobito Corridor projects.

USTDA Director Enoh T. Ebong said the project would facilitate economic activity, trade and critical minerals development between the Port of Lobito in Angola and Zambia’s Copperbelt.