The US and the European Union(EU) have expressed their appreciation for the recent commitment made by Angola, Zambia, and the Democratic Republic of Congo to collaborate on the development of the Lobito Corridor.
This was during the G20 event held in India, as part of the Partnership for Global Infrastructure and Investment (PGII).
This project will link southern Democratic Republic of the Congo and northwestern Zambia to regional and global trade markets through the Port of Lobito in Angola.
In an effort to accelerate progress in collaboration with the three African nations, the EU and the US have joined forces to facilitate the development of the Lobito Corridor.
This includes the initiation of feasibility studies for an environmentally sustainable rail line expansion between Zambia and Angola.
This marks a significant advancement in the partnership aspect of the Partnership for Global Infrastructure and Investment, demonstrating a cooperative approach that holds the potential for emulation in other vital trade corridors across the globe.
The U.S.-EU partnership aims to enhance essential infrastructure throughout sub-Saharan Africa, thereby unleashing the vast potential of this region..
“We are excited to join forces to generate economic benefits with our partners in Angola, the Democratic Republic of the Congo and Zambia,” the US-EU joint statement read.
Fostering Regional Development and Connectivity
This collaboration aims to pool financial assets and technical expertise in order to expedite the development of the Lobito Corridor which includes making investments in digital infrastructure and enhancing agricultural value chains, ultimately boosting regional competitiveness.
This announcement underscores the active engagement of PGI and Global Gateway in uniting stakeholders to fund substantial projects worth billions of dollars.
These endeavours are expected to generate employment opportunities in the local communities, reduce carbon emissions, and enhance the economies of the region.
The US and the EU are taking immediate action to assist governments in launching pre-feasibility studies for the construction of a new railway line connecting eastern Angola to northern Zambia, known as the Zambia-Lobito railway line.
This initiative builds upon the initial support led by the U.S. to renovate the railway section from the Lobito port in Angola to the Democratic Republic of the Congo.
Once the transportation infrastructure linking all three countries is fully operational, it will significantly enhance export opportunities for Zambia, Angola, and the Democratic Republic of the Congo.
This development will also facilitate the seamless movement of goods within the region and promote greater mobility for citizens.
Furthermore, the new railway will substantially reduce transport times, resulting in lower logistics costs and a reduced carbon footprint for exporting metals, agricultural products, and other commodities, as well as for future mineral discoveries.
Collaboration Areas for US and EU
1. Transport Infrastructure Investments: This entails jointly investing in transport infrastructure projects.
2. Facilitating Trade, Economic Development, and Transit: The focus here is on implementing measures that will ease trade, promote economic development, and enhance transit capabilities.
3. Supporting Inclusive and Sustainable Economic Growth: This encompasses a broader effort to support sectors that contribute to inclusive and sustainable economic growth and long-term capital investment in Angola, Zambia, and the Democratic Republic of the Congo.
These collaborative efforts will include
1. Developing Clean Energy Projects to increase the power supply to local communities in the region.
2. Supporting Diversified Investment especially in critical minerals and clean energy supply chains.
3. Extending Digital Access to improve connectivity and access to digital resources.
4. Growing Agriculture Value Chains with the goal of boosting local food production to meet the needs of the region’s growing population and addressing global food security concerns.
5. Enhancing Workforce Training by providing training opportunities to the local workforce.
6. Supporting Small and Medium Enterprises (SMEs) to bolster entrepreneurship and economic diversification in the area.
These initiatives are aimed at fostering inclusive and sustainable economic growth in Angola, Zambia, and the Democratic Republic of the Congo in the long term.