The United States remains steadfast in its commitment to funding the Lobito rail corridor, a vital project facilitating the transport of critical minerals from Africa’s copperbelt to Western markets, despite recent spending cuts under President Donald Trump.
Through the U.S. International Development Finance Corporation (DFC), Washington has pledged a $550 million loan for the Lobito corridor. The project is strategically significant, serving as a counterbalance to Chinese dominance in the region’s copper and cobalt supply chains.
Concerns over U.S. financial backing arose amid Trump’s aggressive budget reductions. However, U.S. Ambassador to Angola, James Story, reassured stakeholders on Wednesday that support for the project remains intact.
“Not at the moment. All the projects with the DFC and Exim Bank are there, and we’re working on them,” Story stated during a tour of Angolan projects alongside European diplomats and Angolan officials.
Angola awarded a 30-year Lobito corridor concession in 2022 to the Lobito Atlantic Railway consortium, led by commodities firm Trafigura, construction giant Mota-Engil, and independent rail operator Vecturis SA.
The first phase involves rehabilitating a 1,300-kilometer railway through Angola and extending it into the Democratic Republic of Congo (DRC) to enhance mineral exports via the Atlantic coast. A second phase under feasibility study would connect Zambia, Africa’s second-largest copper producer, to Lobito.
Lobito Atlantic Railways CEO Francisco Franca stated that financing contracts with the DFC are nearing completion, with signing expected in the coming months.