The U.S. International Development Finance Corporation (DFC) is nearing completion of over $500 million in financing for the Lobito Corridor, a major railway project designed to transport critical minerals from Central Africa’s copper belt to Angola’s Atlantic coast.
The announcement came at the U.S.-Africa Business Summit in Luanda on Monday, signaling increased U.S. engagement in Africa’s critical minerals sector.
Conor Coleman, DFC’s Head of Investments, told Bloomberg that the agency is “actively negotiating” with key stakeholders including the Angolan government and the Trafigura Group to finalize the deal.
The Lobito Corridor is a transnational infrastructure project connecting Angola’s port of Lobito with mineral-rich regions in the Democratic Republic of Congo (DRC) and Zambia.
Don’t Miss This: Africa Supercharges Mining with $26B in Infrastructure
Although the DFC initially announced a review of financing in 2023, Coleman declined to comment on any delays but stressed that “there’s business as usual” at the agency.
He added that the DFC plans to remain heavily involved in Africa’s critical minerals infrastructure, digital, transportation, and energy sectors.
In addition, the DFC has committed $3.4 million in technical assistance to support Pensana Plc’s rare-earth extraction and processing project in Angola.
The DRC government plans to launch a tender in November to begin construction on its section of the corridor, with Vice Prime Minister Jean-Pierre Bemba expressing hopes for the railway to be operational within three years.
The corridor will serve as a direct export route for cobalt, copper, lithium, and other critical minerals mined in the region.
The Lobito Corridor offers a strategic link from inland mines to the Atlantic coast, providing an efficient route to global markets amid rising demand for critical minerals.
The U.S. sees this infrastructure as part of its broader strategy to reduce China’s influence in global mineral supply chains by boosting investment and partnerships in Africa.
Don’t Miss This: FG Seeks Investments in Ports, Digital Infrastructure to Boost Cross-Border Trade Across West Africa
Image Credit: Business Insider Africa
