Wubi News

Biden's Angola visit aims to showcase his attempts to rival China

2024-12-03 00:00:02
Lobito port will see a boost in business if the rail project succeeds

But more and more African countries are considering reducing the export of raw materials to promote local processing.

Anthony Carroll, a minerals expert at the US Institute of Peace, said that if this happens, it could derail the projected economic impact of the corridor.

He is optimistic that the vast deposits of copper in DR Congo and Zambia will keep the Lobito Corridor viable as there exists "a steady demand" for it globally.

Lithium and cobalt have a more "cyclical" demand, he says.

The US Geological Survey estimates that DR Congo has nearly half the world's cobalt deposits.

The vast central African country currently accounts for about 63% of the global supply of the mineral, the bulk of which is exported raw.

Mr Angelo is optimistic that African countries will incrementally grow their industrial capabilities.

He described Biden's visit, and the investment in the Lobito Corridor, as a huge boost for Angola's efforts to change its image

"He presents Angola as a safe place to invest," Mr Angelo says, adding: "Where the US president goes, the whole world follows."

Angola has been rebuilding its infrastructure following the end of an almost 30-year civil war in 2002.

The conflict destroyed the colonial-era Benguela railway line, which is part of the corridor, with only 3% of it in use at the end of the conflict.

Efforts to revive it then began, with China being the first to invest in it.

China has already helped build a stretch of the railway

Between 2006 and 2014, China invested about $2bn to renovate the railway through a rail-for-oil deal.

But Lourenço has expressed regret over the deal, telling the New York Times that it was "disadvantageous" to Angola.

"If you would ask me now if I had to take a new loan under the same conditions, I would say: 'No'," he said, adding that Angola would, nevertheless, pay off the debt.

China’s massive infrastructure investment, through its ambitious Belt and Road Initiative, has been criticised for driving countries in Africa, and Asia, into deep debt.

The US' move into massive infrastructure investments in Africa would exist alongside Chinese-backed projects, representing a more multipolar approach.

China already controls up to 80% of copper mines in the DR Congo, one of the world’s largest producers of the mineral.

With the global focus moving to greener energy, including electric vehicles, the mines of central Africa will become more and more attractive.

The American shift to infrastructure investment in the region comes therefore as no surprise.

Already, work has started along the Lobito Corridor, with the first phase of it encompassing the upgrading of the existing railway from the port to DR Congo's border, with funding from the US Development Finance Corporation.

Ms Matza said the second phase would include 800km of new railway, starting in Angola.

The goal is to eventually connect the Atlantic Ocean to the Indian Ocean through Tanzania.

Beyond transporting minerals, the railway could also boost trade and agriculture across the route.

The Africa Development Bank is already funding projects to the tune of $500m to boost domestic and cross-border trade through the development of small businesses, cooperatives and traders along the Lobito Corridor.

In 2023, US trade with Angola was approximately $1.77bn, according to the State Department, making the oil-producer America’s fourth-largest trade partner in sub-Saharan Africa.

President Biden’s visit fulfils a pledge he made to the continent in 2022, albeit belatedly.

It also helps shape Angola’s place in regional and global development for years to come, despite uncertainties about where the Trump administration will take the relationship.