The Lobito railway in Angola has been awarded a 30-year concession for maintenance and operation to a consortium of European companies led by Trafigura and Mota-Engil.

Strategic Importance of the Lobito Railway

This decision rejected a bid from Chinese firms and highlights the strategic importance of the railway in connecting Angola to Zambia's copper deposits.

Financing and Support

The Lobito railway is set to receive financing from the Africa Finance Corporation, the U.S. government, and the U.S. Development Finance Corporation (DFC) to enhance its connectivity to Zambia.

The DFC has approved a $553 million loan to improve the Angolan section of the railway.

Emphasis on Economic Growth

President Joe Biden has emphasized the significance of the Lobito Corridor railway project for economic growth in Africa and beyond.

Efficiency and Export Opportunities

The railway is expected to reduce transport times for copper and cobalt, enhancing the efficiency of mineral exports.

The Lobito railway is poised to create economic opportunities, with the potential to create jobs, reduce logistics costs, and increase export revenues.

Revitalization and Historical Context

The project aims to process copper and cobalt locally to capture their full value.

The Lobito railway has a historical context, being originally constructed in the early 20th century and falling into disuse during Angola's civil war.

International Investment and Economic Growth

The revitalization of the railway is driven by the global demand for copper and cobalt, with the U.S. and China competing for access to these resources.

The Lobito project reflects the trend of international investment in African infrastructure to unlock mineral wealth and foster economic growth.