The Lobito Corridor: Africa’s Pathway to Prosperity
By Samaila Zubairu: President and Chief Executive Officer of the Africa Finance Corporation (AFC)
Henry Adams once wrote that the railroad in America was the first great economic revolution, opening up new industries and vast resources. Today, Africa stands on the brink of a similar transformation, with projects like the Lobito Corridor poised to reshape the continent’s economic landscape.
The Lobito Corridor, connecting Angola, the Democratic Republic of the Congo (DRC), and Zambia, promises to be an engine for industrialization, regional integration, and wealth creation. This visionary project will not only enhance connectivity but also redefine how Africa utilizes its abundant resources.
The first phase of the project involves refurbishing 1,300 km of railway from Angola’s Lobito port to Luau near the DRC border. Subsequent phases will add new tracks, linking eastern Angola to Zambia’s Copperbelt region. This trade route will connect the Atlantic and Indian Oceans, significantly reducing transit times and carbon emissions.
With vast reserves of cobalt, copper, oil, lithium, nickel, and manganese, the Lobito Corridor is crucial to the global transition towards a green economy. Historically, these resources have been underutilized, with most benefits going to foreign entities. The corridor presents an opportunity to reverse this trend.
Ending Disparity
Africa has long been a supplier of raw materials with minimal value addition, contributing to economic disparities. The continent’s GDP per capita lags behind the global average, but with its vast mineral reserves, Africa has the potential to quintuple its economy by 2060 through industrialization and strategic infrastructure like the Lobito Corridor.
The corridor can drive local processing and manufacturing, creating higher-paying jobs and increasing Africa’s share in global value chains. Special Economic Zones focusing on battery minerals in Zambia and the DRC could drive industrialization and economic growth.
Financial Innovation
The Africa Finance Corporation (AFC) is leading the financing efforts for the Lobito Corridor, mobilizing funds from African pension funds and global institutions. The project has also received support from the US International Development Finance Corporation and the Biden administration, highlighting international confidence in the project.
Investing in the corridor not only secures critical mineral supplies but also promotes Africa-led industrialization and reduces dependence on foreign supply chains. The project is a testament to the potential of global and regional collaboration for sustainable growth.
Pathway to Prosperity
The Lobito Corridor must deliver tangible benefits to local communities, including jobs, training, and improved market access. It should align with initiatives like the African Continental Free Trade Area (AfCFTA) to reduce trade barriers and foster economic growth.
By focusing on high-value processing and local economic benefits, the corridor sets a blueprint for sustainable growth. Investments in projects like the Kamoa-Kakula copper smelter and Zambia’s first battery-grade copper sulphate plant demonstrate Africa’s potential to integrate into global supply chains while retaining value locally.
The Lobito Corridor signifies Africa’s determination to take control of its resources and future. It is not just infrastructure but a pathway to industrialization, global integration, and shared prosperity. Africa’s moment is now, and the Lobito Corridor is its gateway to a brighter future.
Samaila Zubairu is President and Chief Executive Officer of the Africa Finance Corporation (AFC)
