U.S.–China Competition Moves to Infrastructure
The United States has taken a decisive step to anchor its economic and strategic footprint in Africa’s critical minerals supply chain, as the U.S. International Development Finance Corporation joined Angola and regional partners to reach financial close on the long-anticipated Lobito Atlantic Railway project.
Under the agreement, Angola secured $753 million in financing from the DFC and the Development Bank of Southern Africa (DBSA) to accelerate development of the Lobito rail corridor—one of Africa’s most strategically important infrastructure projects in modern history. The deal will fund the modernization of approximately 1,300 kilometers of railway, linking the mineral-rich interiors of the Democratic Republic of Congo (DRC) and Zambia to Angola’s Atlantic coast.
The signing marks a pivotal moment not just for Angola, but for U.S.–Africa trade, AfCFTA integration, and the global competition for critical minerals that underpin electric vehicles, renewable energy, and advanced manufacturing.
The Lobito Corridor is the shortest export route between the DRC’s copper and cobalt belt and Atlantic shipping lanes, making it central to Western efforts to diversify supply chains away from overreliance on China-dominated routes. Once upgraded, the rail line will connect inland mining hubs directly to the deepwater Port of Lobito, dramatically reducing transport time, cost, and logistical risk.
The broader rail network spans more than 2,600 kilometers, linking Angola with the DRC and Zambia—three countries at the heart of Africa’s mineral economy. For Washington, the project represents a concrete move from rhetoric to execution in securing alternative, resilient supply chains for critical minerals.
The project, championed by former President Joseph R. Biden Jr. in collaboration with the Japanese government– was launched under the auspice of G7 Partnership for Global Infrastructure and Investment during the G7 Leaders Summit in Hiroshima in 2023 as a part of the alliance’s broader strategic efforts along with their allies to counter China’s aggressive move and hoarding of critical minerals that are needed for global supply chains, marks a major strategic bet on Africa’s role in the future global economy.
By linking critical minerals to global markets through a U.S.-backed, Africa Continental Free Trade Areas (AfCFTA)-aligned corridor, the project reshapes trade routes, strengthens U.S.–Africa economic ties, and redefines how power, capital, and competition play out on the continent.
The DFC’s involvement underscores how infrastructure finance has become a frontline in U.S.–China competition in Africa. While China has spent two decades building railways, ports, and roads tied to mineral extraction on the continent, the Lobito deal positions the U.S. as a long-term partner focused on commercially viable, transparent, and regionally integrated infrastructure.
In the race for critical minerals, infrastructure is destiny—and with Lobito, Africa is firmly on the map.
A Boost for AfCFTA and Regional Trade
Unlike extractive, bilateral corridors, the Lobito is designed as an open-access trade route, aligning with AfCFTA’s vision of seamless intra-African trade. By backing rail, port, and logistics infrastructure rather than mine ownership, the U.S. is signaling a different model—one that prioritizes market access, private-sector participation, and regional value chains.
Beyond minerals, the Lobito Corridor is expected to become a backbone for AfCFTA-enabled trade, serving as both an export artery and a critical import gateway. The railway will support agricultural inputs, manufactured goods, fuel, and consumer products moving inland, strengthening regional integration across Southern and Central Africa.
For Angola, the project is a cornerstone of efforts to diversify the economy away from oil, boost logistics and services, and position the country as a regional trade hub. For landlocked neighbors, it offers a competitive alternative to longer, congested routes to the Indian Ocean.
The Lobito Atlantic Railway is operated under a long-term concession backed by a consortium that includes Trafigura Group, Mota-Engil SGPS SA, and Belgium’s Vecturis SA. With financing now secured, the operator plans to lift capacity, reliability, and efficiency across the corridor.
“This financing from the DFC and DBSA marks a major milestone in our vision to establish the Lobito Corridor as Africa’s premier trade route,” said Nicolas Fournier, CEO of Lobito Atlantic Railway. “The funding will enable us to significantly expand capacity, improve efficiency, and strengthen economic connectivity across Angola and the wider region.”
The Lobito deal also de-risks one of Africa’s most promising logistics corridors and opens investment opportunities for investors across transport, mining services, energy, warehousing, and industrial processing. Reliable rail access lowers operating costs for mining companies, improves export certainty, and supports downstream beneficiation—key to capturing more value within Africa.
Just as importantly, the project demonstrates that blended finance anchored by U.S. institutions can mobilize large-scale infrastructure capital in Africa—an encouraging signal for investors seeking bankable projects aligned with global supply-chain priorities.
