The African Development Bank (AfDB) has announced a $500 million pledge to support the development of the Lobito Corridor, a strategic transport route that will link Angola, Zambia, and the Democratic Republic of the Congo (DRC).
The Lobito Corridor project aims to connect the mines in the mineral-rich DRC and Zambia to the Angolan port of Lobito, 500 kilometres south of Luanda, the Angolan capital. The project will involve laying hundreds of miles of rail track from Zambia’s Copperbelt province to an existing line in Angola and upgrading the port facilities and border posts.
The project is expected to boost trade and economic integration among the three countries and reduce transport costs and time for exporting minerals such as copper and cobalt, which are crucial for producing electric vehicles and clean energy.
The AfDB’s pledge was announced by its president, Dr Akinwumi A. Adesina, at a special session of the Africa Investment Forum 2023 Market Days, which took place in Marrakech, Morocco, from 8-10 November. The event brought together investors, transaction sponsors, heads of government, and development finance institutions to advance investment-ready deals toward market close.
Dr Adesina said the Lobito Corridor project was a flagship of the AfDB’s vision to channel capital towards critical sectors that will achieve the Sustainable Development Goals, the AfDB’s High 5s, and the African Union’s Agenda 2063.
“That is the Africa we want: a fully interconnected Africa, using regional corridor infrastructure and innovative regional financing instruments to unleash economic opportunities and assure national and regional value chain competitiveness. A well-connected Africa will be a more competitive Africa,” he said.
The AfDB is one of the eight founding partners of the Africa Investment Forum, along with Africa50, Africa Finance Corporation, Afreximbank, Development Bank of Southern Africa, European Investment Bank, Islamic Development Bank, and Trade and Development Bank.
The US and the EU also supported the Lobito Corridor project, which signed a memorandum of understanding with Angola, Zambia, and the DRC last week to kickstart the feasibility study. The US and the EU see the project as an opportunity to challenge China’s dominance in infrastructure investment in Africa and secure access to raw materials that will power the energy transition.
The Lobito Corridor project is part of the AfDB’s broader efforts to invest in African regional transport corridors. As of 2022, the AfDB had invested $13.5 billion in funding 25 transport corridors, building more than 18,000 km of roads, establishing 27 border posts, and constructing 16 bridges.
The AfDB hopes the Lobito Corridor project will serve as a model for other African regional corridors and contribute to the continent’s economic transformation and integration.
Source: Business Insider Africa
