USA Investment In Lobito Corridor Rail Line Is A Positive Game Changer
Lusaka, Saturday 21st May 2023 – The Zambian government is elated with the remarks made by President Joe Biden of the United States of America at the Partnership for Global Infrastructure and Investment (PGII) Meeting held at the Grand Prince Hotel in Hiroshima, Japan.
President Biden announced that his country has already mobilized over $30 billion in investments to date, with plans for further investment in the future.
Hon. Museba Frank Tayali, MP, Minister of Transport and Logistics, described President Biden’s announcement as a real-time game changer for the region, especially Zambia.
Hon. Tayali added that the remarks align well with the New Dawn Administration’s vision of unlocking Zambia’s vast business potential along the Lobito Corridor through private sector participation, job creation, and economic growth.
The minister emphasized that the mere mention of the Lobito Corridor by the G7 at its annual meeting demonstrates the high level of importance and confidence the group has placed in the corridor’s member states.
He stated that this move shows a high sense of confidence in the member states of the Lobito Corridor, as it serves as a booster for investment that will have positive impacts across multiple sectors in the region.
President Biden stated that the United States has already begun working with its partners to realize this vision. He mentioned that the U.S. Development Finance Corporation is looking to invest in the first railway project on the continent, particularly in Sub-Saharan Africa.
The United States is providing support for the development of the Lobito Corridor through an initial investment in rail expansion, which has the potential to become the primary open access transportation infrastructure connecting the Democratic Republic of the Congo (DRC) and Zambia with global markets through Angola.
President Biden also mentioned that the PGII is actively pursuing additional opportunities to connect the initial investments in the Lobito Corridor across the continent, including Tanzania and ultimately reaching the Indian Ocean.
He stated, “The rail line would extend from the western shores of Angola to the border of the DRC and Zambia, with the goal of ultimately reaching the Indian Ocean, connecting the continent east to west for the first time.”
President Biden highlighted that the project would not only promote trade and create jobs but also strengthen supply chains, incentivize investments in agriculture, and promote food security. Additionally, it will enable access to clean energy and digital connectivity across the entire region, leading to enhanced security, prosperity, and opportunities for future generations.
President Biden emphasized that the United States’ focus on key economic corridors is centred on investing in near-term solutions that yield long-term dividends.
Regarding initial investments, the U.S. International Development Finance Corporation (DFC), under the rail consortium, is currently conducting due diligence for a potential financing package of $250 million to finance the Lobito Atlantic Railway Corridor. This open access rail line would connect Lobito Port in Angola to the border of the DRC.
This deal would mark the DFC’s first investment in rail on the continent and represents the initial step towards connecting and developing trading and economic activities from Angola to the DRC. It has the potential to facilitate more significant investments in agriculture, digital infrastructure, and expanded access to electricity.
“As an example, the United States is supporting the development of the Lobito Corridor with an initial investment in a rail expansion that may become the primary open access transportation infrastructure connecting the Democratic Republic of the Congo (DRC) and Zambia with global markets through Angola. PGII is actively pursuing additional opportunities to connect the initial Lobito Corridor investments across the continent, to Tanzania and, ultimately, the Indian Ocean.
Initial investments include:
- Rail Consortium: The U.S. International Development Finance Corporation (DFC) is currently performing due diligence for a potential financing package of $250 million to finance the Lobito Atlantic Railway Corridor – an open access rail line from Lobito Port in Angola to the DRC border. This deal would be the DFC’s first investment in rail on the continent. This project is the first step to connect and develop trading and economic activity from Angola to the DRC, that can help promote greater investments in agriculture, digital infrastructure, and expanded access to electricity.” White House statement.
Access: Factsheet on the G7 Partnership for Global Infrastructure and Investment
https://www.mofa.go.jp/files/100506079.pdf
Read the full White House statement