By Samaila Zubairu: President and Chief Executive Officer of the Africa Finance Corporation (AFC)
“The railroad in America was the first great economic revolution,” wrote the historian Henry Adams, describing how rail opened up new industries and vast resources. Today, Africa is at the precipice of a similarly seismic transformation, with rail projects such as the Lobito Corridor poised to redefine the continent’s economic landscape.
In the same way that railroads transformed the American West, the Lobito Corridor is an engine for industrialisation, regional integration, and wealth creation. Linking Angola, the Democratic Republic of the Congo (DRC), and Zambia — three of the continent’s largest and most resource rich economies — this visionary project promises not just connectivity but a shift in how Africa leverages its abundant resources.
The first phase refurbishes 1,300 km of railway from Angola’s Atlantic port city of Lobito to Luau, near the DRC border. Phase two adds 800 km of new tracks, linking eastern Angola to Zambia’s mineral-rich Copperbelt. A further phase will extend the corridor into Tanzania. The resulting trade route will connect the Atlantic and Indian Oceans and is expected to slash transit times from 45 days to as little as seven between Kolwezi in the DRC and the Port of Lobito. Meanwhile, it will significantly reduce carbon emissions by removing 5,000 heavy-duty trucks from congested roads.
Crucially, the corridor will connect Africa’s mineral wealth with local and global markets and forms the foundation for the continent’s push for more integration into global value chains in critical sectors. This wealth includes over 50% of the world’s cobalt reserves—an essential input for electric vehicle batteries and renewable energy infrastructure—roughly 9% of global copper reserves, 9 billion barrels of oil, and extensive deposits of lithium, nickel, and manganese.
These resources are pivotal to the global transition towards a green economy. Yet, historically, their exploitation has been limited. The mining activity which has taken place has disproportionately benefited foreign entities. The Lobito Corridor represents a chance to reverse this trend.
End to Disparity
Africa has fallen short of its economic potential for too long. Historically, the continent has been a supplier of raw materials with little value addition. The continent’s mineral wealth has contributed significantly to industrialisation overseas, while leaving African nations with minimal gains. To take one example, China processes over 70% of global cobalt, much of which originates from African mines, while Zambia and the DRC export raw copper but import refined products. This dependency perpetuates economic disparity.
As a result, African GDP per capita averaging $2,955 languishes far below the global average of $13,840. The world’s youngest and most vibrant region globally, economists project Africa’s economy could quintuple to $15 trillion by 2060, driven by population growth—but also industrialisation, technological advancement, and strategic infrastructure, like the Lobito Corridor.
With a resource base equivalent to 30% of global mineral reserves, economic corridors such as the Lobito Corridor can spark a shift from our historic trajectory by fostering local processing and manufacturing. Special Economic Zones (SEZs) in Zambia and the DRC focused on battery minerals have the potential to drive industrialisation, create higher-paying jobs, and increase Africa’s share of global value chains.
Financial innovation
Promoting innovative financing to charge the project forward, the Africa Finance Corporation (AFC)—as lead project developer—is mobilising $500 million for the Lobito II railway project, engaging both African pension funds and global institutions in compelling investment offerings. A $553 million direct loan from the US International Development Finance Corporation to fund the Lobito I project also underscores international confidence in the corridor.
President Joe Biden’s administration has been key to the project gaining traction, committing $4 billion to African infrastructure projects. This includes the $600 million of investments in the Lobito Corridor announced when Biden became the first serving US president in almost a decade to visit sub-Saharan Africa. His trip to Angola, with the Lobito Corridor as his culminating presidential deliverable, reflects America’s recognition of the centrality of African resources to clean energy supply chains.
With the incoming Trump administration, there is an opportunity to further strengthen US-Africa economic ties. The logic of investing in the Lobito Corridor is clear: the US can secure critical mineral supplies while promoting Africa-led industrialisation and reducing dependence on rival supply chains.
Pathway to Prosperity
Africa’s history is rife with grand projects that have failed to deliver for local populations. The Lobito Corridor must avoid this pitfall by ensuring significant and tangible benefits—high-value jobs, vocational training, and improved market access—for communities across Angola, the DRC, and Zambia. It must also address agricultural development by connecting high-yielding provinces to broader markets and building export capacity for processed goods. It must align with key initiatives such as the African Continental Free Trade Area (AfCFTA) by facilitating a single market and reducing trade barriers across the continent.
The Lobito Corridor exemplifies the potential of global and regional collaboration to achieve such objectives. By focusing on high-value processing and local economic benefits, it offers a blueprint for sustainable growth. AFC’s $150 million investment in the region’s largest copper smelter at the Kamoa-Kakula mine in the DRC’s Katanga region and our $100 million investment to establish Zambia’s first battery-grade copper sulphate plant in Chingola serve to demonstrate how Africa can integrate into global supply chains while retaining value locally. The Kamoa-Kakula project, for example, will increase the mine’s production by 33%, cut emissions by 46%, and halve waste transport by eliminating 500,000 tons of waste annually.
The Lobito Corridor sends a clear message: Africa is no longer prepared to be a passive supplier of raw materials. By investing in transformative infrastructure, the continent is taking control of its resources and future.
Like the railroads that revolutionised 19th-century America, the Lobito Corridor represents more than infrastructure alone. It is a pathway to industrialisation, global integration, and shared prosperity. The world must recognise Africa as a vital partner in shaping the future of trade, energy, and industry. Africa’s moment is now, and the Lobito Corridor is its gateway.
Samaila Zubairu is President and Chief Executive Officer of the Africa Finance Corporation (AFC)
