THE US government has announced plans to expand the Lobito Corridor, a critical railway project that currently connects Angola to Zambia via the Democratic Republic of the Congo (DRC), extending it all the way to the Indian Ocean through Tanzania. This ambitious expansion aims to enhance regional trade, connect African nations to global markets, and drive economic growth across the continent.
Helaina Matza, the US acting special coordinator for the Partnership for Global Infrastructure and Investment, discussed the progress of the Lobito Corridor’s upgrade and expansion during an online briefing on Wednesday. Matza had just completed a weeklong trip to the DRC and Tanzania, where she focused on strengthening partnerships and engaging with the Tanzanian government and private sector on the next steps of the corridor’s extension.
‘Our partnership with the DRC and engagement with Tanzania is about more than just infrastructure,’ Matza said. ‘As President Biden has emphasised, this project is about delivering high-quality, sustainable infrastructure that fosters lasting economic growth.’
The US government, alongside the European Union, African financial institutions, and the governments of Angola, the DRC, and Zambia, is spearheading the revival of the Benguela railway line, a historic route used to export materials and minerals before African countries gained independence. The project will be financed with $250 million from the US International Development Finance Corporation.
The revamped railway line is designed to enhance export capabilities for Angola, the DRC, and Zambia. Already, the partially refurbished railway has successfully transported Congolese copper to Angola’s Lobito port for shipment to Baltimore on the US East Coast.
Erastus Mwencha, former deputy chairperson of the African Union Commission, highlighted the potential impact of the Lobito Corridor on intra-African trade. ‘One of the reasons intra-Africa trade is low is because of poor transport networks,’ Mwencha noted. He pointed out that, due to these challenges, goods from Europe can sometimes be imported to Africa at more competitive rates than those moved between African countries.
However, Mwencha expressed concern that Africa’s transportation infrastructure and business models remain largely unchanged since the colonial era. ‘Are we going to continue following the colonial model of exporting raw materials, or are we going to add value?’ Mwencha questioned. ‘That, to me, is the more important issue.’
Research indicates that poor transportation networks in Africa increase the cost of goods traded between African countries by 30 to 40 percent, hindering the development of the private sector.
Matza emphasised that the Lobito Corridor project will benefit both African nations and the US, facilitating business across the continent. ‘Reducing trade route times from 45 days to 36 hours opens up new market opportunities,’ she said. ‘This project is about exploring how we can support new agribusiness, logistics, and local food producers along the way.’
In addition to upgrading existing railway lines, the project plans to add 1,300 kilometres of new railway from Zambia to Tanzania, further enhancing connectivity. The expanded Lobito Corridor is slated for completion by 2029, marking a significant step forward in Africa’s transportation infrastructure and its integration into the global economy.
