The Lobito Corridor, spanning from Zambia and the Democratic Republic of the Congo to the Angolese port of Lobito, represents a massive initiative aimed at countering China’s influence in the region. This ambitious project involves constructing approximately 800 kilometers of new railway tracks across Africa. Initial funding of $1.6 billion will facilitate the acquisition of 1,500 wagons, 35 locomotives, and the enhancement of existing rail infrastructure and port facilities. Additionally, the United States has pledged an extra $2.3 billion for the railway, as well as associated mining and refinery ventures, primarily through loans from institutions like the Development Finance Corporation and the Export-Import Bank.
The potential benefits of the Lobito Corridor are immense, given that the Congo and Zambia are leading producers of copper in Africa, collectively accounting for millions of tons of production. Copper holds significant importance in the manufacturing of electric batteries, wind turbines, and electric vehicle charging stations. Moreover, Angola boasts abundant natural resources, with reserves spanning a wide array of minerals crucial for green technology.
The Lobito initiative stands as a pivotal test of Western determination to counter China’s influence in the region. To succeed, the West must mobilize private sector involvement and overcome protectionist tendencies. Nonetheless, the timing appears favorable for the Lobito project, as Chinese investments in Africa are declining, while both the US and EU are committing financial support to the endeavor.
Over recent decades, China has established an extensive infrastructure network across Africa, gaining control over the continent’s valuable mineral resources. However, Chinese loans often come with stringent terms and pose risks of debt entrapment, as evidenced by cases like Sri Lanka’s default on loans for the Hambantota Port. With a significant portion of China’s loans to low and middle-income countries entering repayment periods, Beijing is reducing exposure to distressed debt. Notably, China’s foreign direct investment in Sub-Saharan Africa dropped by 55% in 2022 compared to the previous year.
In response to China’s waning influence, governments in Angola, Zambia, and the Congo are increasingly seeking closer ties with the West. For instance, when Angolan President João Manuel Gonçalves Lourenço visited President Joe Biden in the Oval Office, he commended Biden’s approach to the continent and expressed interest in strengthening economic and security partnerships with the US.
