(AFP) – The US International Development Finance Corporation (DFC) said it has agreed a loan for the refurbishment of a rail link in Angola, which is strategic for the transport of minerals that are in high demand at American firms. In an announcement Wednesday, the DFC stated that the rail link runs between the Lobito port on the Atlantic coast to Luau on the border with the mineral-rich Democratic Republic of Congo.
DFC’s $553-million investment, made alongside $200 million provided by the Development Bank of Southern Africa, is expected to increase Lobito’s transportation capacity ten-fold to 4.6 million metric tons. Additionally, it is projected to reduce the cost of transporting critical minerals by up to 30 percent, according to a statement from the corporation. Much of the loan will be used to renovate 1,300 kilometers (800 miles) of rail tracks and to acquire new locomotives.
“Central Africa is rich in key resources essential to US industries, including minerals critical for technology and defense,” DFC said. “DFC’s investments help secure reliable supply chains and prevent monopolization by China and other strategic competitors.”
The Lobito corridor is set to drastically reduce the time it takes to transport minerals between the DRC or Zambia to the coast, cutting it down to 40-50 hours compared to the 45 days required by road currently.
© 2024 AFP
