US-China Lobito corridor investments have the potential to transform Africa’s economic landscape. Initially planned as a historic visit to Angola, President Joe Biden’s trip was postponed due to Hurricane Milton. This was reported by the railway transport news portal Railway Supply.

US-China Lobito corridor investments have the potential to transform Africa’s economic landscape. Initially planned as a historic visit to Angola, President Joe Biden’s trip was postponed due to Hurricane Milton.

US-China Lobito Corridor Investments: A Strategic Push for African Development

This visit would have been the first by a US president to Africa in nearly a decade. It highlights Africa’s evolving economic role and its substantial mineral reserves vital to green transition goals.

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The US, EU, and China are competing to secure Angola, Zambia, and Congo’s critical minerals. The Lobito Corridor initiative exemplifies the competition, with the US and EU aligning efforts to establish stronger supply chains.

China, already investing heavily, aims to enhance its Belt and Road Initiative along the corridor. US-China cooperation may create new avenues for sustainable development in Africa.

If the two superpowers align their Lobito strategies, it could accelerate Africa’s green industrialization. Jointly-driven investments would align with Africa’s broader economic growth and sustainable development goals.

Africa’s potential for growth attracts both powers, as both seek competitive positions within the Lobito Corridor. China recently signed a $1 billion deal to restore the TAZARA railway.

The US announced its own Lobito Corridor extension, championed by Helaina Matza as key to exporting cobalt and copper. This project could expedite mineral exports for green energy.

President Biden underscored that US infrastructure projects aim for sustainable growth, emphasizing high-quality infrastructure investments. China’s on-ground efforts resonate with similar sustainability goals.

Rather than fostering rivalry, these investments provide a unique opportunity for collaborative growth. Africa can engage both global powers to encourage economic partnerships along the Lobito Corridor.

Responsible mining initiatives are foundational to sustainable development in the region, with major investments underway. Chinese firms like CMOC lead mineral processing in Congo.

CMOC’s DRC investments aim to double copper output by 2028, with ESG commitments in focus. Its Tenke Fungurume Mine is Africa’s first to achieve Copper Market certification.

The firm’s ESG approach includes a hydropower partnership with Lualaba Power, ensuring clean energy use. This collaboration supports both local industries and CMOC’s mining activities.

In response, the US pursues ESG-based mining in the Lobito Corridor to attract investors. Washington’s Minerals Security Partnership emphasizes responsible resource extraction and refining.

This US-led approach involves EU cooperation and agreements with Zambia and the DRC. These efforts aim to build regional supply chains for electric vehicle batteries.

The Biden administration and EU’s public investment model contrasts with China’s private sector focus. However, diplomatic efforts foster a conducive environment for private investment.

G7’s Lobito rail project complements these goals by building infrastructure that underpins regional growth. Clean industries powered by sustainable resource management would follow.

An East-West railway connection could link Lobito and TAZARA routes, creating Africa’s first transcontinental railway. Such a corridor could bridge the Atlantic and Indian oceans.

How US-China Lobito Corridor Investments Support Africa’s Green Industrialization

Regional banks and governments would benefit from the Atlantic-to-Indian railway, which supports regional growth. Addressing long shipping times could boost trade competitiveness.

The full potential of these railways remains untapped, with fragmentation limiting economic impact. A transcontinental corridor would allow Angola, DRC, Zambia, and Tanzania to flourish.

Africa’s young population and mineral reserves position it for significant export-driven growth. Green industries could anchor sustainable development, fueled by external investments.

US and China can choose to foster division or unite to drive Africa’s green industrialization. Jointly supporting the region offers transformative benefits for all parties.

By collaborating with African organizations, Lobito Corridor nations can support mutually-beneficial projects. Cooperation would align strategies, leveraging private-sector expertise.

Africa’s mineral wealth can underpin a global green transition, supporting regional development. The US and China have the resources to turn Africa into a global energy hub.