US Department of State Joins Pensana, World Bank to Discuss Lobito Corridor at CMA 2024

The Lobito Corridor project – a cross-border infrastructure development connecting Angola with mining operations in Zambia and the DRC – is expected to be complete in 2029. The project creates various economic opportunities for the region by strengthening both intra- and inter-African mineral trade.

During the Critical Minerals Africa (CMA) 2024 summit, a panel discussion on The Lobito Corridor: Driving Economic Transformation and Opening Markets will delve into opportunities the corridor presents for Angola, the DRC and Zambia. Speakers include Tim George, Executive Director & CEO of Pensana Plc; Martin Lokanc, Senior Mining Specialist as the World Bank; and Kevin Ngunza Man, Economic & Commercial Specialist at the U.S. Department of State in the DRC. The discussion aims to examine how the project can serve as a blueprint for developing regional value chains, driving strategic infrastructure investment and maximizing socioeconomic growth in Africa.

CMA is the largest gathering of critical mineral stakeholders in Africa. Taking place from November 6-7 in Cape Town, the event positions Africa as the primary investment destination for critical minerals. This year’s edition takes place under the theme ‘Innovate, Enact, Invest in African Critical Minerals to Sustain Global Growth,’ connecting African mining projects and regulators with global investors and stakeholders to untap the full potential of the continent’s raw materials. Sponsors, exhibitors and delegates can learn more by contacting sales(g)energycapitalpower.com.

The respective governments of Angola, the DRC and Zambia signed the Lobito Corridor Transit Transport Agency Agreement in 2023, setting expectations to complete construction of the project within the next five years. A l,300km-long railway line, the Lobito Corridor connects the Angolan Atlantic Coast to the town of Luau on the Angola-DRC border. The project also includes a 550km stretch in Zambia, linking the Jimbe border to Chingola in the copperbelt, as well as a 400km stretch in the DRC, connecting the mining town of Kolwezi.

The Lobito Corridor is considered a pioneering infrastructure project in Africa, creating newfound economic growth opportunities for the region. Historically relying on road-based transportation such as trucks, mineral exports from Zambia and the DRC have been plagued by challenges such as high costs and transport delays. The Lobito Corridor provides both a cheaper and faster alternative for exports, essentially streamlining the process from ‘pit to port.’ Beyond transport, the corridor creates jobs, strengthens supply chains, boosts connectivity and facilitates trade within southern Africa. In addition to rail, the project incorporates improvements in road infrastructure and digital connectivity and is therefore seen as a boost for regional development.

Given the importance of the corridor as a pathway for taking African minerals global, the Lobito Corridor has generated substantial financial support from an assortment of players. Italy announced that it is investing $320 million in the corridor in June 2024, with the funds supporting the development of core rail infrastructure. During the same month, the United States Agency for International Development announced a $235 million contribution to support Angola’s National Development Plan, which includes the development of the Lobito Corridor. Multilateral development finance institution the African Development Bank signed an MoU in October 2023 to mobilize funds for the project alongside the US, the European Commission, the Africa Finance Corporation and the governments of Angola, Zambia and the DRC. These commitments signal strong global support the project.

The panel discussion at CMA 2024 will explore the implications of the Lobito Corridor on the southern African region. Speakers will unpack the value of infrastructure investments in Africa’s mining industry while exploring how the corridor can serve as a blueprint for other markets across the region.