The Lobito Corridor: Africa’s Gateway To Global Prosperity
go through Samaila Zubairu: President and CEO, African Finance Corporation (AFC)
“The railroads of the United States were the first great economic revolution,” historian Henry Adams wrote, describing how railroads opened up new industries and abundant resources. Today, Africa is on the brink of a similar sea change, with rail projects like the Lobito Corridor poised to redefine the continent’s economic landscape.
Just as railroads transformed the American West, the Lobito Corridor was an engine of industrialization, regional integration, and wealth creation. Linking Angola, the Democratic Republic of the Congo (DRC) and Zambia – three of the continent’s largest and most resource-rich economies, this visionary project not only promises connectivity but will transform the way Africa uses its vast resources .
The first phase is to renovate 1,300 kilometers of railway from Angola’s Atlantic port city of Lobito to Luau, near the border with the Democratic Republic of Congo. The second phase added 800 kilometers of new track to connect eastern Angola with Zambia’s mineral-rich copper belt. The next phase will extend the corridor to Tanzania. The resulting trade route will connect the Atlantic and Indian Oceans and is expected to reduce transit time between Kolwezi in the Democratic Republic of the Congo and the port of Lobito from 45 days to seven days. At the same time, carbon emissions will be significantly reduced by removing 5,000 heavy trucks from congested roads.
Crucially, the corridor will connect Africa’s mineral wealth to local and global markets and lay the foundation for the continent’s drive to further integrate key sectors into global value chains. This wealth includes more than 50% of the world’s cobalt reserves (an important input in electric vehicle batteries and renewable energy infrastructure), about 9% of global copper reserves, 9 billion barrels of oil, and large deposits of lithium, nickel and manganese.
These resources are critical to the global transition to a green economy. However, historically their utilization has been limited. The mining activities that have taken place have benefited foreign entities significantly. The Lobito Corridor is an opportunity to reverse that trend.
end inequality
Africa has long failed to realize its economic potential. Historically, the African continent has been a supplier of raw materials with little added value. The continent’s mineral wealth has contributed greatly to overseas industrialization, but African countries have benefited little. For example, China processes more than 70% of the world’s cobalt, much of it from African mines, while Zambia and the Democratic Republic of Congo export raw copper but import refined products. This dependence perpetuates economic inequality.
As a result, Africa’s per capita GDP is US$2,955, well below the global average of US$13,840. As the world’s youngest and most dynamic region, economists predict that Africa’s economy could grow fivefold by 2060 to 15, driven by population growth as well as industrialization, technological advances and strategic infrastructure such as the Lobito Corridor. Trillions of dollars.
Economic corridors such as the Lobito Corridor, with a resource base equivalent to 30% of global mineral reserves, can trigger a shift in our historical trajectory by promoting local processing and manufacturing. Special economic zones (SEZs) in Zambia and the Democratic Republic of Congo focusing on battery minerals have the potential to drive industrialization, create high-paying jobs and increase Africa’s share of global value chains.
financial innovation
In a bid to drive innovative financing to drive the project forward, Africa Finance Corporation (AFC), the lead project developer, is raising $500 million for the Lobito II rail project, attracting African pension funds and global institutions to participate in a compelling investment product . The US International Development Finance Corporation’s $553 million direct loan for the Lobito Phase 1 project also highlights the international community’s confidence in the corridor.
President Joe Biden’s administration has been key to the project gaining traction, pledging $4 billion to African infrastructure projects. These include a $600 million investment in the Lobito Corridor announced when Biden became the first sitting US president to visit sub-Saharan Africa in nearly a decade. His trip to Angola featured the Lobito Corridor as his final presidential deliverable, reflecting U.S. recognition of the centrality of African resources in clean energy supply chains.
With the Trump administration taking office, there is an opportunity to further strengthen U.S.-Africa economic ties. The logic for investing in the Lobito Corridor is clear: The United States can secure critical mineral supplies while promoting African-led industrialization and reducing reliance on rival supply chains.
road to prosperity
African history is littered with ambitious projects that failed to deliver results for local people. The Lobito Corridor must avoid this pitfall and ensure significant and tangible benefits for communities in Angola, the Democratic Republic of the Congo and Zambia – high-value jobs, vocational training and improved market access. It must also address agricultural development by connecting highly productive provinces to wider markets and building export capacity for processed products. It must be aligned with key initiatives such as the African Continental Free Trade Area (AfCFTA) by promoting the single market and reducing trade barriers across the continent.
The Lobito Corridor exemplifies the potential for global and regional cooperation to achieve these goals. By focusing on high-value processing and local economic benefits, it provides a blueprint for sustainable growth. AFC’s $150 million investment in the Democratic Republic of Congo’s Kamoa-Kakula mine in Katanga region, the region’s largest copper smelter, and its $100 million investment in Zambia’s first battery-grade copper sulfate plant at Chingola are examples of how Africa is integrating Global supply chains while retaining value locally. For example, the Kamoa-Kakula project can reduce waste by 500,000 tons per year, increase mine production by 33%, reduce emissions by 46%, and reduce waste transportation by half.
The Lobito Corridor sends a clear message: Africa is no longer prepared to be a passive supplier of raw materials. By investing in transformative infrastructure, the continent is taking control of its resources and its future.
Like the railroads that revolutionized 19th-century America, the Lobito Corridor represents more than just infrastructure. This is a path towards industrialization, global integration and shared prosperity. The world must recognize Africa as an important partner in shaping the future of trade, energy and industry. Africa’s moment has come, and the Lobito Corridor is the gateway to Africa.
Samaila Zubairu is President and CEO of Africa Finance Corporation (AFC)
