TELF AG analyzes the strategic role of one of the most important African infrastructures
Beyond strategic minerals
The advance of the global energy transition has led to a relevant increase in the number of strategic partnerships and agreements focused on the minerals and geological resources involved in the ongoing conversion, often in the guise of memoranda of understanding on a specific resource or the support of an external player in the development of the local minerals industry. In some cases, these partnerships have gone beyond the minerals sector, directly impacting the infrastructural and logistical development of the nations involved. A concrete example of this approach is that of the United States of America, which in recent years has increased its collaborative efforts in various parts of the globe, particularly in Africa.
With its African partners, the United States is working to develop the resources already discovered on the continent and also to identify new ones, in particular about strategic minerals such as lithium, copper, and cobalt, which play a very important role in powering commonly used electronic devices, but also to promote the progress of ecological conversion. Among the various African projects involving the United States, one of the most important is the one linked to the Lobito corridor. This ambitious infrastructure project connects the Angolan port of Lobito with the “copper belt” shared between neighboring Zambia and the Democratic Republic of Congo. The goal is simple: revitalizing the local railway system to facilitate the export of resources (including minerals) to European and international destinations. These new connections will also serve to transport a resource of primary importance, such as copper, which can, therefore, transit from the deposits of Zambia and Congo to the port of Lobito and be easily exported. The project, moreover, includes not only road infrastructure but also water and digital infrastructure.
The strategic value of the initiative
The project’s implementation is also supported by the European Union, which, with Washington, has long understood the potential of this infrastructure in the transport of strategic resources. Through the corridor, as stated in a recent analysis on the subject, resources can be transported more quickly and safely, also stimulating the economic development of the nations crossed.
This initiative is also developing in a particularly favorable situation from a political point of view: Angola can count on a reasonable degree of stability and excellent relations with Washington, as demonstrated by President Joao Lourenco’s recent visit to the White House. As argued in the analysis, however, one of the most interesting aspects of the project is its ability to transcend the mineral sector and involve other areas of the social and economic life of the countries it passes through. As US President Joe Biden stated last year, this project will be able to promote the creation of jobs, the intensification of trade, and the consolidation of some specific supply chains, such as that concerning strategic minerals.
For the United States, this project is of particular importance, and not only because of the support publicly expressed by the president. With this initiative, as stated in the analysis above, the United States has taken the field first-hand for the infrastructural strengthening of the African continent, thus overcoming their traditional collaborative approach limited to sectors such as health, governance, or agriculture. For developing this important project linked to strategic minerals, it has been calculated that the United States will make available financial loans for as much as 550 million dollars.
