US makes US$2 billion commitment to Angola as oil-rich nation eyes move beyond Chinese funding model

The United States has announced plans to invest over US$2 billion in Angola, positioning itself as a superior alternative to China, which has financed the majority of Angola's reconstruction over the past two decades. President Joe Biden stated that the US has pledged over US$1 billion this year to support solar power, bridge construction, and internet infrastructure. An additional US$1 billion has been proposed to fund the strategically significant Lobito Corridor, which extends from Zambia to the Angolan coast via the Democratic Republic of Congo.

The US International Development Finance Corporation has already allocated US$250 million for a feasibility study to renovate the 1,300km (800-mile) Lobito Atlantic Railway line, a key component of the Lobito logistics corridor. In collaboration with the European Union, the US is also planning to construct a new 800km rail line between Angola and Zambia, with an eye on critical minerals such as cobalt and copper from the DRC and Zambia for its green energy transition, including the electric car industry.

Biden described this initiative as the largest US rail investment in Africa to date, one that will generate employment and facilitate market connectivity for future generations. The US investment in Angola is a component of the Partnership for Global Infrastructure and Investment, initiated by the Group of 7 last year with the objective of providing US$600 billion by 2027 to counter China’s Belt and Road Initiative. Biden emphasized the increasing importance and impact of the Angola-America partnership, and pledged to revisit the country, stating: “I have been there and I will be back.