The investment announcement was made by USAID representative William Butterfield at the opening of the Coordination Conference for the Lobito Corridor, a railway infrastructure on the southern coast of Angola that connects the country to the mineral-rich areas of the Democratic Republic of Congo (DRC) and Zambia, an event organized by the United States.
William Butterfield stressed the key role of this infrastructure in regional integration, connecting the African continent, expanding export opportunities and boosting trade. This argument is in line with the US justification for the visit to Angola by US President Joe Biden from 13 to 15 October, which will serve to strengthen economic partnerships and mark the creation of the first transcontinental open-access railway network in Africa.
In addition, the visit to Angola will formalize the G7 (group of the seven most developed countries) "Partnership for Global Infrastructure and Investment (PGI)" project for the Lobito Corridor.
"We recognize that building infrastructure can raise environmental concerns. That's why we're investing 3.5 million dollars to support local organizations in Angola to ensure that processes are fair and accountable," William Butterfield said Wednesday, adding that "USAID will also help improve the government's auditing capabilities to minimize fraud and abuse."
According to the USAID representative in Angola, the Lobito Corridor will create many job opportunities, strengthen local economies, and improve the quality of life of communities along its route.
"The new Lobito Atlantic Railway is one of the most important transportation infrastructure projects the United States has supported in Africa in a generation. It will strengthen regional trade and growth and advance our shared vision of creating a connected rail network from the Atlantic to the Indian Ocean," he said.
The official stressed that one of the objectives of the Lobito Corridor is to alleviate congestion on southern routes, such as Durban, South Africa, and Beira, Mozambique, by offering another transport alternative.
For the USAID representative in Angola, prioritizing rail transport will reduce Africa's carbon footprint, highlighting that the United States Development Finance Corporation recently approved up to 533 million dollars for the Lobito Corridor and the US Export-Import Bank "granted a historic 1.6 billion dollars loan to support 65 solar power mini-grids in four provinces in Angola".
In turn, the deputy director of Power Africa, Ted Lawrence, said that this initiative led by the US government and coordinated by USAID, has already helped to mobilize more than 25 billion dollars for electrification projects throughout sub-Saharan Africa, much of it coming from the private sector.
According to Ted Lawrence, the Lobito Corridor offers an opportunity to address the energy deficit that has long held back growth in sub-Saharan Africa, highlighting Power Africa's extensive experience in working with governments to strengthen energy policies, "creating the right regulatory environments to attract investment", while also ensuring environmental preservation.
