(AFP) – The US International Development Finance Corporation (DFC) said it has agreed to a loan for the refurbishment of a rail link in Angola, which is strategic for the transport of minerals that are in high demand by American firms. In an announcement on 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, as well as reduce the cost of transporting critical minerals by up to 30 percent, according to the statement. Much of the loan will be used to renovate 1,300 kilometres (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,” the DFC said. “DFC’s investments help secure reliable supply chains and prevent monopolization by China and other strategic competitors.” The Lobito corridor is expected to drastically reduce the time it takes to transport minerals between the DRC or Zambia to the coast, bringing it down to 40-50 hours compared to the current 45 days by road.
© 2024 AFP
