U.S. to Extend Lobito Railway Corridor Through Tanzania, Boosting African Trade

U.S. to Extend Lobito Railway Corridor Through Tanzania, Boosting African Trade

The U.S. government has announced plans to extend the Lobito Corridor railway project, which currently connects Angola, Zambia, and the Democratic Republic of the Congo (DRC), further east to Tanzania and the Indian Ocean. The extended railway is expected to enhance regional trade, connect African markets to the global economy, and promote economic growth across the continent.

Helaina Matza, the U.S. acting special coordinator for the Partnership for Global Infrastructure and Investment, outlined the project’s progress during an online press briefing. Fresh from a trip to the DRC and Tanzania, Matza emphasized the importance of the partnership with African nations in extending the economic corridor, noting that the project is about more than just infrastructure. “It’s about offering high-quality, sustainable infrastructure projects that deliver lasting economic growth,” she said, echoing President Joe Biden’s vision for the initiative.

The expansion is part of a broader effort, supported by the U.S., European Union, African financial institutions, and the governments of Angola, Zambia, and the DRC, to modernize the Benguela railway line. This line has been critical for exporting minerals and materials from the region since the colonial era. The U.S. International Development Finance Corporation has committed $250 million to fund the project.

The newly refurbished railway has already facilitated shipments of Congolese copper to Angola’s Lobito port, from where the goods were shipped to the U.S. city of Baltimore. The extended railway would further enhance export opportunities for African countries, particularly as intra-African trade is hindered by poor transport networks, which add 30-40% to the cost of traded goods.

Erastus Mwencha, former deputy chairperson of the African Union Commission, noted that while projects like the Lobito Corridor can boost trade, it is crucial for Africa to break away from a colonial-era economic model that focuses on exporting raw materials. “Are we going to follow the colonial model of just exporting raw materials, or are we going to add value?” Mwencha questioned.

In addition to refurbishing existing lines, the U.S.-backed project envisions constructing 1,300 kilometers of new railway from Zambia to Tanzania, with a completion target of 2029. This extension will significantly reduce transportation time for goods across the region, opening up new opportunities for agribusiness, cold storage, and logistics development in Africa.

Matza highlighted the potential impact of the project, stating that reducing trade routes from 45 days to 36 hours would “open up a whole new world for markets,” benefiting both African economies and U.S. business interests.