Joe Biden visits Angola to showcase Lobito Corridor

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Joe Biden visits Angola to showcase Lobito Corridor

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Joe Biden is set to begin his long-anticipated maiden visit to ******* as US president but it comes amidst uncertainty over future US-******* relations as Donald Trump prepares to succeed him in January.

Biden’s visit to oil-rich Angola seeks to underline an attempt by America to focus more on trade and heavy investment in infrastructure, in what some analysts see as the most direct counter yet to China’s influence on the continent.

“It’s a perfect marriage of convenience,” Angolan analyst Edmilson Angelo told the BBC.

Biden’s choice of Angola is significant – he is the first US president to visit the country, signalling a dramatic improvement in relations between the two nations.

Angola was firmly in the political orbit of China and Russia after independence from Portuguese colonial rule in 1975, but since taking power in 2017, President João Lourenço has steered it towards closer relations with the US.

“Lourenço’s administration has seen Angolan foreign policy move away from ideology towards pragmatic multipolarity, becoming truly non-aligned,” said Alex Vines, director of the ******* programme at Chatham House, a London-based think thank.

Biden will highlight his signature initiative in the region – a railway line that will stretch for 1,344km (835 miles), connecting the cobalt, lithium and copper mines in the Democratic Republic of Congo, and the copper-belt region of Zambia, to the Angolan port city of Lobito on the Atlantic Ocean.

Apart from oil, Angola is also rich in minerals, including cobalt and lithium, which are essential for making batteries for electric vehicles.

Once completed, the Lobito Corridor will help transport these important minerals from the resource-rich heart of ******* across to Europe and the US.

On its website, the Lobito Corridor Investment Promotion Authority (IPA), says the US involvement “represents the first alternative from Washington DC to China’s Belt and Road Initiative” that is aimed at building a series of trade routes that tie several countries in *******, and elsewhere, to the ****** giant.

Biden’s visit comes at the tail-end of his presidency, with no clarity yet on whether the Trump administration will continue with the project.

Dr Vines believes it “may survive the Trump presidency as it is primarily aimed at competing against China”.

However, he points out that both Western and ******** firms will be able to use the infrastructure, and that “may make its value questionable to Trump, a US president who will likely define his administration in large measure by competition with Beijing”.

Angola’s President João Lourenço expressed hope that the Trump administration would build on the initiative.

“Powers come and go, so, all we have to do is to be ready to work with those that will be in power,” President João Lourenço told the New York Times ahead of Biden’s visit.

The Lobito Corridor is a ****** project between the three ******** countries, the US, other G7 powers and private investors.

“We have a collective commitment for global support among the G7 countries of $600bn [£470bn] and over – through 2027,” said Helaina Matza, the acting special coordinator for the project at the US Department of State.

Lourenço defended the investment, dismissing concerns that it mimics the colonial-era exploitation of *******’s resources.

“Today, when we export the minerals, we export them in the interest of the ******** countries, different from what used to be in the colonial ******* when they were extracted without the consent of our indigenous people,” he told the New York Times.

AFP

Lopito port will see a boost in business if the rail project succeeds

But more and more ******** countries are considering reducing the export of raw materials to promote local processing.

Anthony Carroll, a minerals expert at the US Institute of Peace, said that if this happens, it could derail the projected economic impact of the corridor.

He is optimistic that the vast deposits of copper in DR Congo and Zambia will keep the Lobito Corridor viable as there exists “a steady demand” for it globally.

Lithium and cobalt have a more “cyclical” demand, he says.

The US Geological Survey estimates that DR Congo has nearly half the world’s cobalt deposits.

The vast central ******** country currently accounts for about 63% of the global supply of the mineral, the bulk of which is exported raw.

Mr Angelo is optimistic that ******** countries will incrementally grow their industrial capabilities.

He described Biden’s visit, and the investment in the Lobito Corridor, as a huge boost for Angola’s efforts to change its image

“He presents Angola as a safe place to invest,” Mr Angelo says, adding: “Where the US president goes, the whole world follows.”

Angola has been rebuilding its infrastructure following the end of an almost 30-year civil war in 2002.

The conflict destroyed the colonial-era Benguela railway line, which is part of the corridor, with only 3% of it in use at the end of the conflict.

Efforts to revive it then began, with China being the first to invest in it.

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China has already helped build a stretch of the railway

Between 2006 and 2014, China invested about $2bn to renovate the railway through a rail-for-oil deal.

But Lourenço has expressed regret over the deal, telling the New York Times that it was “disadvantageous” to Angola.

“If you would ask me now if I had to take a new loan under the same conditions, I would say: ‘No’,” he said, adding that Angola would, nevertheless, pay off the debt.

China’s massive infrastructure investment, through its ambitious Belt and Road Initiative, has been criticised for driving countries in *******, and Asia, into deep debt.

The US’ move into massive infrastructure investments in ******* would exist alongside ********-backed projects, representing a more multipolar approach.

China already controls up to 80% of copper mines in the DR Congo, one of the world’s largest producers of the mineral.

With the global focus moving to greener energy, including electric vehicles, the mines of central ******* will become more and more attractive.

The ********* shift to infrastructure investment in the region comes therefore as no surprise.

Already, work has started along the Lobito Corridor, with the first phase of it encompassing the upgrading of the existing railway from the port to DR Congo’s border, with funding from the US Development Finance Corporation.

Ms Matza said the second phase would include 800km of new railway, starting in Angola.

The goal is to eventually connect the Atlantic Ocean to the Indian Ocean through Tanzania.

Beyond transporting minerals, the railway could also boost trade and agriculture across the route.

The ******* Development Bank is already funding projects to the tune of $500m to boost domestic and cross-border trade through the development of small businesses, cooperatives and traders along the Lobito Corridor.

In 2023, US trade with Angola was approximately $1.77bn, according to the State Department, making the oil-producer America’s fourth-largest trade partner in sub-Saharan *******.

President Biden’s visit fulfils a pledge he made to the continent in 2022, albeit belatedly.

It also helps shape Angola’s place in regional and global development for years to come, despite uncertainties about where the Trump administration will take the relationship.

You may also be interested in:Getty Images/BBC

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