Biden Pledges $600 Million to African Rail Project to Transport Critical Minerals
Biden Pledges $600 Million to African Rail Project to Transport Critical Minerals

Biden Pledges $600 Million to African Rail Project to Transport Critical Minerals

  • 05-Dec-2024 10:55 PM
  • Journalist: Patrick Knight

On the final day of his long-awaited visit to Angola, President Joe Biden made a significant pledge to Africa’s infrastructure development, announcing an additional $600 million investment for the Lobito Corridor railway project. This brings the total U.S. investment in the ambitious project to $4 billion, as Biden declared, “Africa is the future.”

The Lobito Corridor project is one of the largest U.S. investments in a rail project outside the country. It aims to revitalize nearly 2,000 kilometers (1,200 miles) of rail lines that connect Angola to the mineral-rich regions of Congo and Zambia in central Africa. The project is a crucial component of efforts to enhance trade and mineral exports from the continent, especially critical materials used in clean energy technologies and electric vehicle batteries, such as cobalt and copper.

Biden toured the Lobito port terminal, part of the broader infrastructure development, and outlined the strategic importance of the project, which is expected to have long-lasting economic implications. He noted that the U.S. and its allies are heavily invested in the initiative, which will facilitate quicker transportation of minerals and goods, reducing the transit time from 45 days via truck to approximately 45 hours by rail.

Biden emphasized the historical underinvestment in Africa, telling leaders that the continent had been “left behind for much too long.” He expressed his belief that the Lobito Corridor and similar initiatives could help Africa overcome these barriers, offering immense growth potential for its resource-rich nations.

The Lobito Corridor is seen as a key economic and strategic development, especially given China’s dominant role in mining in Congo and Zambia. Biden’s pledge and the broader U.S. investment represent a direct counterpoint to China’s Belt and Road Initiative (BRI) in Africa. Biden framed the U.S. approach not as a geopolitical confrontation with China but as a business-driven model aimed at fostering long-term economic partnerships and infrastructure development across the continent.

“This is a project that is full of hope for our countries and our region,” said Congo President Félix Tshisekedi, whose country holds more than 70% of the world’s cobalt reserves. Tshisekedi highlighted the transformative potential of the railway, which will not only enhance logistical efficiency but also drive broader economic and social development. He emphasized that the project is “not just a logistical project,” but a “driving force for economic and social transformation for millions of our people.”

Zambian President Hakainde Hichilema also praised the project, calling it a “huge, huge opportunity” for Africa’s future. He added, “It’s good for Africa,” echoing Tshisekedi’s sentiment about the long-term benefits the project will bring to the region.

The U.S. is not alone in its investment. The European Union, the Group of Seven (G7) industrialized nations, and a consortium of private Western companies, along with African banks, are contributing to the $6 billion funding of the project.

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