Biden's African Rail Ambition: A New Era for Minerals Trade

In his final days in office, President Biden, affectionately known as 'Amtrak Joe' for his long-standing affinity for rail transport, traveled to Angola to promote a significant African rail project. The Lobito Corridor, a $3 billion U.S.-backed initiative, aims to refurbish 1,300 kilometers of train lines in Zambia, Congo, and Angola, expediting the shipment of critical minerals like copper and cobalt to Western markets.

The project, jointly funded by the U.S., European Union, and private partners, is a strategic move to counter China's growing influence in Africa. China currently dominates the DRC's mining sector, while Angola's oil industry relies heavily on Chinese exports. The U.S. views the Lobito Corridor as a strategic alternative to China's Belt and Road Initiative.

Biden's visit coincides with a $600 million U.S. investment in the project, joining over $3 billion already committed by the U.S., EU, and other partners. The corridor, which has already completed the first phase between Angola's coast and the Congolese border, is poised to extend by 800 kilometers to connect Zambia, with feasibility studies now finished.

The Lobito Corridor is part of a broader trend of African railway development, with international cooperation and partnerships driving new projects and renovations. The African Union has emphasized the importance of railways in achieving the African Continental Free Trade Area's goals and improving regional connectivity.

Investors seeking exposure to African infrastructure development may consider the Lobito Corridor and similar projects as potential opportunities. With strong international backing and a focus on critical minerals, these investments could drive long-term growth and sustainability in the region.



The Lobito Corridor project, if successful, could significantly impact regional economic growth, trade, and geopolitics in East and Southern Africa. With a 1,300-km rail line connecting the Democratic Republic of Congo to Angola's coast, the corridor could expedite mineral exports, reducing current transit times from 45 days to 40-50 hours. This enhanced efficiency could boost trade, with the U.S. and key allies investing heavily in the project. Meanwhile, China's competing railway initiative, revamping an eastern line from Zambia to Tanzania, hints at geopolitical implications, with each rail project attempting to influence regional dynamics.