U.S. Pledges $550M for Strategic Lobito Rail Corridor

The U.S. has pledged $550 million to fund the Lobito rail corridor, crucial for transporting copper and cobalt from Africa to the West. Despite Trump's spending cuts and Chinese competition, the project remains a strategic priority, with contracts nearing completion.

The United States has pledged a $550 million loan to the Lobito corridor, a vital railway project aimed at transporting key minerals such as copper and cobalt from Africa's central copperbelt to Western markets. A U.S. diplomat confirmed the commitment remains intact despite budget cuts initiated during President Donald Trump's tenure.

James Story, U.S. Ambassador to Angola, addressed concerns over the project's future, expressing confidence that funding from the International Development Finance Corporation and the Exim Bank is secure. He highlighted the strategic importance of the corridor in balancing Chinese influence in the region's mineral exports.

The 1,300 km railway, managed by Lobito Atlantic Railway consortium, is being refurbished to extend from Angola into the DRC, with potential future expansions to Zambia. Western governments, including the U.S., continue to support the endeavor, with final financing contracts expected soon.

(With inputs from agencies.)