NICHOLAS SHUBITZ: Why the Lobito Corridor should be a priority for the US

The US has fallen behind the Brics bloc in Africa. China is the largest economic player on the continent, both in terms of trade and investment. Russia donates free food and fertiliser to struggling countries and is winning allegiance as a trusted security partner. The United Arab Emirates (UAE) and Saudi Arabia are investing heavily to secure access to critical minerals, and India is expected to follow suit in line with its recently announced “Critical Minerals Mission”. 

This relative decline in US influence on the continent can be traced back to the war on terror and the 2008 financial crisis, with military spending far outstripping development capital, and bailouts for US banks leading to a recovery in the US that was not replicated in SA. Despite the election of Barack Obama as the nation’s first black president, Washington has not been able to position itself as Africa’s first-choice development partner. 

It is no coincidence that Brics was formalised as a grouping during this time and the continued financialisation of the US economy has seen that country become more of a magnet for global capital than Africa’s primary source of development finance. Structural shifts in the US economy, which have been ongoing since the early 1970s, have produced domestic ruptures that have further pushed Africa to the periphery of Washington’s strategic priorities.    

Nevertheless, strategy documents were published that promised closer ties. Obama’s US Strategy Towards Sub-Saharan Africa emphasised promoting democracy but gave no tangible examples of how US-Africa relations could be advanced in such a way that economic growth would permanently alleviate poverty. China and Brics have subsequently committed billions of dollars to the continent towards achieving this objective.

Former president Joe Biden’s updated Africa policy similarly focused on democracy, along with climate change, neither of which are immediate concerns for millions of Africans who still lack access to basic amenities. Biden’s strategy document also criticised the role played by China and Russia on the continent, echoing the tone of the previous Trump administration.

However, as Brics invests significantly more capital in Africa than the US, maligning the continent’s closest partners must lead Africans to question whether the US is more interested in geopolitical rivalries or genuine co-operation. 

Despite the challenges facing US-Africa relations, the fundamental premise that Africa should be a key strategic priority for US foreign policy remains a compelling proposition, especially with the new Trump administration expressing a desire to reduce reliance on Chinese supply chains for critical minerals with defence industry applications.

The Lobito Corridor consequently becomes a crucial initiative at a time when the US risks losing Africa to Brics entirely. China is already the leading job creator on the continent, while the UAE has become Africa’s main capital investor, committing $44bn last year. In contrast, US investments remain below $10bn per annum. 

The US still possesses a high degree of cultural capital across the continent and this goodwill should be leveraged as a means of keeping up with rival powers. Nevertheless, actions speak louder than words and if Washington’s rhetoric fails to translate into tangible benefits for ordinary African citizens, Brics will continue to displace Western influence and economic activity on the continent.

This can already be seen in the Sahal, where French troops have been expelled and replaced by Russian mercenaries and military advisers. Meanwhile, in Democratic Republic of Congo (DRC) the US, French and Belgian embassies were vandalised in protest at the West’s inability to help resolve security issues in the country while its miners continued to extract mineral resources.

The Lobito Corridor 

The Lobito Corridor passes through Angola on its way to Zambia and DRC, providing a rail corridor to bring several different critical minerals from the African interior to the sea. Investing in this infrastructure project promises to help spur economic growth in the region while helping the US and its allies secure access to critical minerals.

One of the world’s largest and highest-grade rare earth deposits is located along the Lobito Corridor, in the Longonjo municipality in the province of Huambo, Angola. The project includes an open pit mine, concentrator, recovery plants and a tailings storage facility and is expected to eventually produce 5% of the world’s mixed rare earth carbonate. This could be an important resource for the Group of Seven (G7) as China currently dominates the rare earth supply chain.

Additional plans to build grain silos and upgrade the surrounding road infrastructure could help boost agricultural production, creating additional benefits for the participating countries. Similarly, local beneficiation of the extracted minerals would be hugely economically beneficial to the region. However, so far the rhetoric has outstripped the actual spending.

To be fair to the private sector participants, low metal prices and currency risk remain major deterrents to the expansion of the corridor. This is why, paradoxically, Brics’ efforts to de-dollarise the global economy could make it more feasible for investors to commit capital to the project.      

Federal funding for the Lobito Corridor has been paused while President Donald Trump’s new administration reviews government spending. This may make sense domestically, but it risks making the US look like an unreliable partner after Biden visited Angola and promised transformative investments.

The benefits of investing in the Lobito Corridor undoubtedly outweigh the costs for the US, and the funding will hopefully be restored. However, if local communities do not benefit directly from the initiative, it risks being perceived as example of neocolonialism and could further spur the shift towards Brics among African nations.   

Promoting the project as a means of counteracting China or Russia would also be a mistake. While extending the existing rail infrastructure into Zambia could help ring-fence resources for the US while limiting China’s immense and growing influence in Africa, this should not be the primary objective of the project.

Africans want to be treated as legitimate business partners, not pawns in a geopolitical game of chess the Brics bloc is already winning.

• Shubitz is an independent Brics analyst.