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The United States of America’s investment in the Lobito Corridor rail line has been hailed as a significant development by Museba Frank Tayali, the Minister of Transport and Logistics in Zambia. The announcement was made by President Joe Biden during the Partnership for Global Infrastructure and Investment (PGII) Meeting held in Hiroshima, Japan
The United States of America’s investment in the Lobito Corridor rail line has been hailed as a significant development by Museba Frank Tayali, the Minister of Transport and Logistics in Zambia. The announcement was made by President Joe Biden during the Partnership for Global Infrastructure and Investment (PGII) Meeting held in Hiroshima, Japan.
President Biden revealed that the United States has already mobilized over US$30 billion in investments and is committed to furthering its efforts. This declaration has been welcomed by the Zambian government, particularly the New Dawn Administration, as it aligns with their vision of unlocking the region’s business potential and stimulating economic growth through private-sector involvement.
Hon. Tayali expressed his satisfaction with President Biden’s remarks, emphasizing that they demonstrate the high level of importance and confidence the G7 and its member states place in the Lobito Corridor. He believes that this investment will have far-reaching positive impacts across multiple sectors in the region.
President Biden outlined the United States’ plans to support the development of the Lobito Corridor through an initial investment in a rail expansion project. This railway is set to become the primary open-access transportation infrastructure connecting the Democratic Republic of the Congo (DRC) and Zambia to global markets via Angola.
The rail line would extend from the western shores of Angola to the border of the DRC and Zambia, with the goal of ultimately reaching the Indian Ocean, connecting the continent east to west for the first time.
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President Biden stressed the importance of investing in key economic corridors, highlighting their potential to provide long-term dividends. As part of the initial investments, the U.S. International Development Finance Corporation (DFC) is conducting due diligence for a potential financing package of US$250 million to finance the Lobito Atlantic Railway Corridor. The Zambian government and stakeholders in the region are optimistic about the transformative impact of the USA’s investment in the Lobito Corridor rail line. The project has the potential to spur economic growth, improve regional connectivity, and create opportunities for generations to come.
