American President Joe Biden visited Angola to meet with President Joāo Lourenço, as well as the Presidents of the Democratic Republic of the Congo and Zambia and the Vice President of Tanzania. This visit – from December 2-4, 2024 – centered around the Lobito Corridor rail project, in which the United States has a significant interest. President Biden pledged $600 million for infrastructure projects along the Corridor – in addition to the $300 million the United States was already providing.
The Lobito Corridor is a transnational, multibillion dollar open access rail network that will in time connect the Atlantic Ocean on Angola’s coast with the Indian Ocean on Tanzania’s coast. The rail will run through two of Africa’s mineral-rich countries – the Democratic Republic of the Congo and Zambia.
The Lobito Corridor will address Africa’s longstanding transportation shortfalls. Unreliable and expensive transport has impacted everything from the ability to ship fresh foods, move mineral ores to ports in an efficient manner and allow people to travel safely, easily and cost effectively.
Offering efficient rail services should not only impact the four national economies, but also the economies of localities in its path. It is expected that African businesses will tap into spillovers such as supply- and value chain services, road construction, water, digital infrastructure and secondary export-tied industries, especially agribusiness.
The main objective of the African Union’s Department in the Transport and Tourism sectors is to build a well interconnected and integrated networks of transport infrastructure that are able to support the provision of cost-effective, safe, secure and sustainable services in order to enable the continent to realize its full economic potential and physical integration.
In line with the various Transport Declarations and Decisions, the AU Agenda 2063 flagship projects and its current strategic plan, the key interventions the Commission will focus on include:
• Finalization of the framework and launching of the High Speed Train Project and strengthening of regional railway training institutions and Development of Transport Corridors.
During the December 2022 African Leaders’ Summit in Washington, President Biden reiterated the US endorsement of the AU’s Agenda 2063.
The United States and its international partners view this rail project as a game-changer designed to compete with China in the race to meet the future’s skyrocketing demand for critical minerals. China currently controls 60 percent of global critical mineral production and 85 percent of processing capacity. Africa’s production of these commodities are necessary for cell phones, electronics, renewable energy and more.
It is projected that the United States will need an increasing percentage of such minerals in years to come. President Biden is hoping to shift the advantage away from China primarily by reshaping the way Africa’s mineral rich countries do business.
According to the U.S. Department of Energy (DOE), a generic supply chain — which includes extraction, processing, components, end-use technology, and recycling and reuse — provides a useful context to consider geologic, technical, environmental, political, and economic factors that impact supply risk. Transportation effectiveness plays a major role in this construct.
According to the MSN news service, China recently banned exports to the United States of the critical minerals gallium, germanium and antimony that have widespread military applications, escalating trade tensions the day after Washington’s latest crackdown on China’s chip sector.
Top industry associations also urged Chinese companies to be wary of buying US chips as they are “no longer safe” and buy locally instead in a rare coordinated response to Washington’s curbs on Chinese chipmakers.
China and the US have targeted each other’s economies in the last few weeks, even before US President-elect Donald Trump returns to the White House in January. Trump has promised to impose heavy tariffs on imported Chinese goods, reviving a trade war from his first four-year term as president.
The export curbs strengthen enforcement of existing limits on critical minerals exports that Beijing began rolling out last year but apply only to the US market.
A Chinese Commerce Ministry directive on dual-use items with both military and civilian applications cited national security concerns. The order, which takes immediate effect, also requires a stricter review of end-usage for graphite items shipped to the US.
The United States is sorely lagging China in this fight. In the fiercely competitive race for critical minerals, we cannot afford to continue to be disconnected from the projected transportation infrastructure envisioned for Africa.