On his state visit to Angola, US President Joe Biden announced more than $560 million in new funding for the Lobito Corridor transport infrastructure initiative.

This Corridor is hailed as the largest US-supported infrastructure project on the continent, designed to connect the Port of Lobito on Angola’s Atlantic coast with Zambia, with an emphasis on state-of-the-art rail infrastructure.

During what is expected to be his first and final journey to Africa as president before he leaves office in January, Biden commended the advancements made on the Corridor since its launch under the Partnership for Global Infrastructure and Investment (PGI) at the 2023 G7 Summit, coinciding with the announcement of substantial funding.

According to the White House, the promised investments are anticipated to draw in at least $200 million in additional private sector funding for infrastructure initiatives along the Corridor. This would increase total US investments to over $4 billion—when including international partners, the total surpasses $6 billion. Discussions are underway to improve connectivity to Tanzania’s Port of Dar es Salaam, linking the Atlantic and Indian Oceans, which will enhance regional trade and integration across East and Southern Africa.

Speaking to an audience at the Carrinho Food Processing Factory in Benguela, alongside counterparts Joao Lourenço of Angola, Felix Tshisekedi of the Democratic Republic of Congo, Hakainde Hichilema of Zambia, and Tanzania’s Vice President Philip Isdor Mpango, Biden stated that the Corridor represents “investments in all of our futures.”

“Just think about how transformative this will be for technology, clean energy, agriculture, and overall food security. It’s quicker, it’s cleaner, it’s more cost-effective, and most importantly, it’s just plain common sense…”

“Essential minerals needed for electric vehicles and semiconductors can be sourced from this region. The clean energy necessary to power artificial intelligence data centers and drive economic growth can be generated here. Food crucial for eradicating hunger can be produced, transported, and exported throughout this Corridor. In simple terms… nations along the Lobito Corridor hold solutions to some of the world’s toughest challenges.”

Will Trump support the Corridor?

The Corridor is envisioned as a component of the Partnership for Global Infrastructure and Investment, a G7 initiative aimed at counterbalancing Chinese influence on the continent. However, Alex Vines, director of the Africa Program at Chatham House, pointed out that the Corridor extends beyond just US geopolitical interests.

“The Lobito project is designed to compete with China. Nonetheless, both Western and Chinese companies will have access to the infrastructure it generates… This could create uncertainties regarding its appeal for Trump, a US president likely to frame his administration largely around competition with Beijing.

“(However) African leaders navigating a multipolar world will not agree to being caught in a rivalry between Washington and Beijing. If Trump decides against supporting Lobito, investments from the EU and the African Development Bank are likely to continue.”

David Omojomolo, an Africa economist at Capital Economics, believes that “US investment in the project will probably persist under President Trump, given the strong incentives related to securing critical minerals and countering China’s influence.”

AFC provides the majority of new funding

A significant share of the new commitment for the Corridor comes from the African Finance Corporation (AFC), whose president and CEO Samaila Zubairu addressed Biden and his African counterparts. The AFC has committed to providing up to $500 million in funding for the Lobito-Zambia greenfield rail project, one of the Corridor’s major initiatives, serving as the lead developer.

“This investment emphasizes our belief in the project’s transformative potential to deliver economic benefits that transcend borders. We will engage African pension funds to partner with us, ensuring sustainability for future generations.

“Additionally, we will collaborate with other Multilateral Development Banks (MDBs) and financial institutions to create instruments that attract global institutional capital, similar to successful strategies in markets like Japan and the Gulf,” Zubairu stated.

Zubairu also revealed that the AFC has established a partnership with critical minerals company KoBold Metals as an anchor client for the railway, guaranteeing a minimum annual transport of 300,000 tons of copper and related freight. KoBold Metals is a California-based startup backed by billionaires Bill Gates and Jeff Bezos.

The AFC has also committed $100 million to Kobaloni Energy to support Zambia’s first battery-grade copper sulfate production facility, ensuring consistent cargo movement along the newly developed railway.

“The Lobito Corridor stands for more than just a rail line—it is an economic corridor that provides a lower-cost, lower-carbon route to African integration and global competitiveness,” Zubairu emphasized.