USA to fund $2.3bn railway in SADC region to secure resources for climate-friendly future

The United States recently signed an MOU with the African Development Bank (AfDB) and Trafigura to build out the Lobito Railway Corridor - a US$2.3bn railway line that will span 2600 KM and connect 3 countries within the SADC region i.e Angola, DRC and Zambia. Construction on the railway line is expected to begin in 2026 following an ongoing feasibility study…

The project has been noted in its significance as the USA has largely ignored partnering with African countries in infrastructure development deals. This stance has largely left African countries looking for financing to build out infrastructure to work with China who have been willing to finance projects in Africa through the Belt and Road Initiative (BRI). The BRI has seen China pour billions into Africa, financing projects such as the Addis Ababa-Djibouti Railway ($1.3bn), and the Karuma power station ($1.4bn) projects in Ethiopia and Uganda, respectively.

Why is the USA changing its tune on infrastructure projects in Africa?

Following the announcement of the Lobito Railway Corridor project, US dignitaries are signalling that the Western nation’s attitude towards Africa is fast-changing. Why the sudden change of heart on Africa you may be asking? Well, the minerals in Africa are key to the current shift to green energy that developed countries are fighting towards. Joe Biden’s senior adviser for energy and investment Amos Hochstein made it clear in no uncertain terms that this was the big motivator;

“There is no time to waste, we have been absent from the scene for far too long. An electric vehicle is essentially a battery, and what's in the battery is Africa and so there's a great opportunity here for Africa to be part of a 21st century clean energy future.”

Joe Biden’s senior adviser - Amos Hochstein