Angola’s minister of Transport Ricardo Viegas d’Abreu recently highlighted the significant financial commitments from the G7 and Italy, including a $320 million pledge from Italy, which complement the investments from the United States’ Partnership for Global Infrastructure (PGI) and the European Union’s Global Gateway Strategy.
D’Abreu emphasized the Lobito Corridor’s strategic importance, stating, “This financial support from Italy directly aids the Benguela Railway (CFB) connection to Zambia, enhancing Angola’s ability to engage its international partners.”
The minister noted that while the funding is directed to the government, it ultimately strengthens private sector operations within the corridor.
Key Investments and Commitments
United States:
In May, the United States committed $1.3 billion to the development of the Lobito Corridor, making it the primary beneficiary of the Global Partnership for Investment and Infrastructure (PGI). Additionally, the World Bank mobilized $135 million to support the project.
European Union:
In March, the EU announced €45 million to support protected areas and the circular economy along the Lobito Corridor, focusing on solid waste treatment and recycling in Luanda and its surroundings.
An additional €3 million was allocated for feasibility studies connecting the corridor to Zambia under the Global Gateway Strategy.
Italy:
The G7, with Italy taking a leading role, approved approximately $320 million in funding for the Lobito Corridor.
This funding aims to improve coordination between involved countries and ensure successful project implementation.
Grupo Carrinho, selected to operationalize this strategic implementation, focuses on food security and social and financial inclusion of family farmers. The funding process is ongoing, currently in the “due diligence” phase.
Expert Opinions and Strategic Importance
Economist Augusto Fernandes emphasized the Lobito Corridor’s potential to stimulate economic development across Angola and neighboring countries.
He noted, “The Benguela Railway, running from the DRC to Porto do Lobito, enables trade and other economic activities that benefit the region.”
Fernandes expressed hope that investments would materialize before 2027, underlining the corridor’s capability to support Angola’s transition into a global economy with reliable infrastructure for agriculture, electricity, ports, and Wi-Fi connectivity.
Professor Augusto Maquengo, speaking on the G7 meeting in Italy, underscored the corridor’s strategic importance.
He highlighted that the Lobito Corridor, extending from the Port of Lobito in Angola to the DRC, is crucial for regional economic development and global trade connections.
G7 leaders recognized the corridor’s potential to facilitate mineral and commodity transport, promoting economic growth and regional integration.
They discussed necessary infrastructure investments to enhance efficiency and capacity and measures to ensure security and stability.
The G7 emphasized international partnerships, environmental sustainability, and social responsibility as integral to the corridor’s development.
“The G7 reaffirmed its support for the Lobito Corridor as a strategic project that can significantly contribute to economic development and regional connectivity in Africa, while promoting sustainable and inclusive practices,” concluded Maquengo.
