Latest news with #LobitoCorridor
See - Sada Elbalad
a day ago
- Politics
- See - Sada Elbalad
Could the DR Congo Rwanda Agreement Reshape Africa's Development Map?
By: Dr. Mohamed Mahmoud Abdelwahab In pursuit of lasting regional stability, the Democratic Republic of the Congo (DRC) and the M23 movement have signed a Declaration of Principles committing to a permanent ceasefire, an end to hate speech, and the renunciation of any efforts to seize new territory by force. The agreement was brokered by Qatar, with the presence of US envoy Masad Boulos, and marks an important addition to the American-brokered peace deal signed in June between the DRC and Rwanda. That deal had focused on disengagement, disarmament, and the conditional integration of armed groups. The two peace agreements are expected to pave the way for further diplomatic steps, including a meeting at the White House, where President Biden plans to host the presidents of the DRC and Rwanda. The United States sees these efforts as a gateway to securing its economic and strategic interests—especially in energy and mining—in this vital part of the African continent. The main driver of international interest in the Great Lakes region lies in its enormous natural wealth, particularly in the DRC, which holds 70 percent of global cobalt reserves, 67 percent of the world's coltan production (used in nuclear and electronic industries), ranks fourth in industrial diamond production, and has large deposits of lithium and high-grade copper. The DRC and Zambia together produce around 3 million tons of copper and cobalt annually. These mediation efforts in eastern Congo reflect a growing American role in African conflict resolution, with hopes of redirecting energy and resources toward meaningful development. The DRC has been in conflict since 1998, resulting in the deaths of nearly 6 million people, the displacement of 7 million, and the presence of more than 100 armed groups competing for control in the mineral-rich east. As people in the region hope for peace and the elimination of ethnic violence and armed militias, another element attracting global attention is the Lobito Corridor—a multi-country infrastructure project. Backed by the United States, it involves a major railway linking the DRC, Zambia, and Angola, allowing copper and cobalt to be exported through the Port of Lobito. In December 2024, the US pledged an additional $560 million, bringing total support to $4 billion for the project. At the same time, Russia has signed an agreement with Congo-Brazzaville to construct a pipeline from Pointe-Noire to Brazzaville, signaling Moscow's interest in expanding its energy footprint. In June 2025, Angola hosted the 17th US–Africa Summit, which focused heavily on minerals, energy, and infrastructure—key sectors shaping global competition on the continent. Global and emerging powers increasingly view Africa as a center of future economic growth. There is a noticeable shift toward economic diplomacy, with governments negotiating investment deals and trade partnerships across Africa. The recent DRC agreements with Rwanda and M23 are seen as breakthroughs after a period of sharp tensions, including Rwanda's June 7 withdrawal from the Economic Community of Central African States (ECCAS). That move came after Equatorial Guinea's presidency of the group was extended, bypassing Rwanda, due to opposition from the DRC and Burundi. ECCAS member states cover 20.4 percent of Africa's landmass, and their combined oil reserves are estimated at 31.3 billion barrels, nearly 28 percent of the continent's total. In a related development, Angola recently announced the discovery of its first-ever natural gas well in the Congo Basin, holding an estimated 1 trillion cubic feet of gas—a major turning point in Central Africa's energy future. In February 2024, the DRC began exporting liquefied natural gas (LNG) for the first time, with proven reserves estimated at 283 billion cubic meters, drawing more international focus to energy security and development in Central Africa. This increasing attention is also fueled by the ongoing US–China competition. In 2024, China opened the China–Africa Chamber of Commerce in Addis Ababa and pledged $51 billion in financial support to African countries. Beijing has also removed tariffs on goods from the continent's least developed nations. Chinese investment in Africa has now surpassed $40 billion. The United States, meanwhile, is shifting from an aid-driven model to one focused on trade and investment. A recent meeting hosted by former President Donald Trump at the White House with the leaders of five African nations is seen as part of a larger effort to increase US influence, especially in strategic minerals and energy areas central to the rivalry with China and Russia. read more Analysis- Turkey Has 0 Regional Allies... Why? Analysis: Russia, Turkey... Libya in Return For Syria? Analysis: Who Will Gain Trump's Peace Plan Fruits? Analysis: Will Turkey's Erdogan Resort to Snap Election? Analysis: What Are Turkey's Aspirations in Iraq? Opinion & Analysis Analysis: Mercenaries In Libya... Who Should Be Blamed? Opinion & Analysis Analysis- How 'Libya Nightmare' Takes Erdogan to Algiers Opinion & Analysis Analysis: What Happens After Brexit? Opinion & Analysis Analysis: Strategic Significance of Libya's Sirte, Jufra! News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Sports Get to Know 2025 WWE Evolution Results News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" News Flights suspended at Port Sudan Airport after Drone Attacks
Business Insider
24-06-2025
- Business
- Business Insider
US nears $500 million deal to fund African mineral export railway
The U.S. International Development Finance Corporation (DFC) is nearing completion of over $500 million in financing for the Lobito Corridor. The U.S. International Development Finance Corporation is finalizing over $500 million in financing for the Lobito Corridor railway project in Africa. This project aims to establish a critical minerals transportation route from Central Africa's copper belt to Angola's Atlantic coast. The initiative is seen as a strategic move to strengthen U.S. involvement in Africa's critical minerals sector. The U.S. International Development Finance Corporation (DFC) is nearing completion of over $500 million in financing for the Lobito Corridor, a major railway project designed to transport critical minerals from Central Africa's copper belt to Angola's Atlantic coast. The move comes as the Trump administration reaffirms its support for the ambitious infrastructure initiative, which is viewed as a strategic effort to boost U.S. engagement in Africa's critical minerals sector. Speaking at the U.S.-Africa Business Summit in Luanda on Monday, DFC's Head of Investments, Conor Coleman, said the agency is 'actively negotiating' with key stakeholders, including the Angolan government and Trafigura Group, to finalize the deal, Bloomberg reported. Lobito corridor project The Lobito Corridor project is a major transnational infrastructure and investment initiative designed to connect the Atlantic port of Lobito in Angola to the mineral-rich regions of the Democratic Republic of Congo (DRC) and Zambia. The DFC initially announced in 2023 that it was reviewing financing for the project. When asked about delays, Coleman declined to elaborate but emphasized that they are not related to any upcoming policy changes under the Trump administration. 'There's business as usual' at the DFC, Coleman said. 'You'll see us playing a lot in critical minerals infrastructure, both digital and transportation, as well as energy, especially here on the African continent.' The DFC has committed a $3.4 million technical assistance grant to support Pensana Plc's rare-earth extraction and processing project in Angola. Meanwhile, Congo's government plans to launch a tender in November to begin construction on its portion of the corridor, with hopes the railway will be operational within three years, according to Vice Prime Minister Jean-Pierre Bemba. Congo, the world's largest cobalt producer and second-largest copper miner, also holds significant lithium reserves, all of which could be transported along the corridor to global markets.
Zawya
24-06-2025
- Business
- Zawya
Angola, Zambia push Lobito Corridor rail project as financing talks advance
LUANDA - Zambia hopes to start work on the Lobito Corridor railway connecting its copper belt to Angola's Atlantic coast by the third quarter of 2026, Transport Minister Frank Tayali said, as the project moves forward amid financing negotiations. The corridor, which will link Zambia's Chingola region to Angola's Benguela railway line at Luacano, is expected to span over 530 km and serve as a key export route for copper and agricultural goods. Speaking to Reuters on the sidelines of the U.S.-Africa summit being held in Luanda, Tayali expressed optimism about the multinational project, noting interest from the United States, the European Union, and regional stakeholders. "We have a developer in the Africa Finance Corporation working through the financial issues, and things are looking very good," Tayali told Reuters. "This is something monumental, and we have a lot of confidence in its potential to address global food insecurity and unlock Africa's arid land for agriculture." Angola's Minister of State for Economic Coordination José Massano said the government remains committed to facilitating investments like the Lobito Corridor through private sector negotiations but ruled out direct government funding for the project. Talks have focused on concession contract clauses, including potential guarantees sought by financiers. "We may have one or two clauses adjusted to facilitate the relationship between operators and financiers," Massano said. "These processes take time, but the firm commitment is there to make it happen." Massano also confirmed that Angola is advancing on a planned $500 million World Bank funding, with requirements expected to be fulfilled by the end of the year. On the fiscal front, Massano addressed Angola's budgetary outlook amid volatile oil prices. Speaking at the summit on Monday, he noted that oil prices above $70 per barrel — aligned with Angola's 2025 budget forecast — had offered temporary relief for implementing economic and social programmes. However, oil prices fell sharply on Tuesday casting uncertainty over Angola's fiscal projections. Oil prices extended losses to hit a two-week low on Tuesday after Israel agreed to U.S. President Donald Trump's proposal for a ceasefire with Iran, alleviating worries over supply disruptions in the Middle East. Brent crude futures were down $2.48, or 3.5%, at $69 a barrel by 0927 GMT. U.S. West Texas Intermediate crude fell $2.37, also 3.5%, to $66.14. Asked whether the country had ruled out an IMF programme, Massano said Angola remains open to dialogue with multilateral organizations, including the International Monetary Fund, to consolidate public finances if necessary.
Reuters
24-06-2025
- Business
- Reuters
Angola, Zambia push Lobito Corridor rail project as financing talks advance
LUANDA, June 24 (Reuters) - Zambia hopes to start work on the Lobito Corridor railway connecting its copper belt to Angola's Atlantic coast by the third quarter of 2026, Transport Minister Frank Tayali said, as the project moves forward amid financing negotiations. The corridor, which will link Zambia's Chingola region to Angola's Benguela railway line at Luacano, is expected to span over 530 km and serve as a key export route for copper and agricultural goods. Speaking to Reuters on the sidelines of the U.S.-Africa summit being held in Luanda, Tayali expressed optimism about the multinational project, noting interest from the United States, the European Union, and regional stakeholders. "We have a developer in the Africa Finance Corporation working through the financial issues, and things are looking very good," Tayali told Reuters. "This is something monumental, and we have a lot of confidence in its potential to address global food insecurity and unlock Africa's arid land for agriculture." Angola's Minister of State for Economic Coordination José Massano said the government remains committed to facilitating investments like the Lobito Corridor through private sector negotiations but ruled out direct government funding for the project. Talks have focused on concession contract clauses, including potential guarantees sought by financiers. "We may have one or two clauses adjusted to facilitate the relationship between operators and financiers," Massano said. "These processes take time, but the firm commitment is there to make it happen." Massano also confirmed that Angola is advancing on a planned $500 million World Bank funding, with requirements expected to be fulfilled by the end of the year. On the fiscal front, Massano addressed Angola's budgetary outlook amid volatile oil prices. Speaking at the summit on Monday, he noted that oil prices above $70 per barrel — aligned with Angola's 2025 budget forecast — had offered temporary relief for implementing economic and social programmes. However, oil prices fell sharply on Tuesday casting uncertainty over Angola's fiscal projections. Oil prices extended losses to hit a two-week low on Tuesday after Israel agreed to U.S. President Donald Trump's proposal for a ceasefire with Iran, alleviating worries over supply disruptions in the Middle East. Brent crude futures were down $2.48, or 3.5%, at $69 a barrel by 0927 GMT. U.S. West Texas Intermediate crude fell $2.37, also 3.5%, to $66.14. Asked whether the country had ruled out an IMF programme, Massano said Angola remains open to dialogue with multilateral organizations, including the International Monetary Fund, to consolidate public finances if necessary.
News24
24-06-2025
- Business
- News24
US sticks to plan for new African critical minerals railway
• For more financial news, go to the News24 Business front page. The US International Development Finance Corporation is finalising more than $500 million in financing for the Lobito corridor, a railway project that will haul critical minerals from central Africa's copper belt to an Atlantic port in Angola. The DFC is 'actively negotiating' with stakeholders, including the Angolan government and Trafigura Group over the funding, Conor Coleman, head of investments at DFC, told reporters on the sidelines of the US-Africa Business Summit in the Angolan capital, Luanda, on Monday. 'We remain very committed to that project overall and we're working tirelessly to make sure that project is effectuated,' he said. The DFC first said it's reviewing financing for the project in 2023. Coleman declined to comment on the reasons for the delay, adding that they're unrelated to any changes the Trump administration has planned for the DFC. 'There's business as usual' at the DFC, Coleman said. 'You'll see us playing a lot in critical minerals infrastructure, both digital and transportation, as well as energy, especially here on the African continent.' The DFC has committed a $3.4 million technical assistance grant to Pensana's rare-earths extraction and processing project in Angola and is in talks to finance Carrinho Group's agricultural manufacturing plant through a senior secured-debt facility. In separate comments, Angola's Minister of State for Economic Coordination Jose de Lima Massano attributed the delays to contractual clauses, including guarantees sought by the funders. 'These aren't state loans,' Massano said. 'We're working to ensure the right conditions for private investment to advance quickly.' Neighbouring Democratic Republic of Congo is also asking the DFC to support plans to rehabilitate a railway line from the country's copper and cobalt mines around the town of Kolwezi that connects to the corridor, Congolese Transport Minister Jean-Pierre Bemba said. The country is already in talks with the European Union and the European Investment Bank about supporting a public-private partnership to develop the project, Bemba said. A small amount of planned funding for the project from USAID was blocked amid cuts to the agency by the Trump administration earlier this year. Congo's government plans to launch a tender to build the infrastructure in November, with the hope the railway may be running in three years, Bemba said. Congo is the world's biggest cobalt producer and second-largest copper miner, and has huge deposits of lithium that could be shipped along the line. The Trump administration has shown a keen interest in Africa's critical minerals as it seeks to challenge China's dominance. While the US lags China in the minerals race in Africa, it's 'not too late,' Coleman said. China currently processes all the minerals it extracts from the continent in China, 'and that's not what any of the countries want,' he said. There is room for the US and for the countries to diversify their customer base and think differently about beneficiation, Coleman said. 'There's opportunity in the lateness.'
