To compete with China, the US is providing loans for the Lobito corridor railway in Angola and the Democratic Republic of the Congo (DRC)

The Atlantic coast African country Angola has received approval from the US International Development Finance Corporation (DFC) for a loan of 553 million dollars to modernize the infrastructure of the Atlantic railway line connecting the border of the Democratic Republic of the Congo (DRC). The Southern African Development Bank (DBSA - Development Bank of Southern Africa/Banque de développement d'Afrique australe) also provided additional financing of 200 million dollars for this railway modernization project.

The United States is committed to fulfilling its promise to modernize the railway segment of the [Lobito Corridor] (corridor de Lobito), which runs from the deep-water port of Lobito on the Atlantic coast of Angola to the border city of Luau near the Democratic Republic of the Congo (DRC).

The total financing of 753 million dollars (equivalent to 687 million euros) benefits [Lobito Atlantic Railway], aiming to modernize this strategic route for the export of Congolese minerals. The funds will be used for the renovation of the Angolan section, as well as the procurement of signaling equipment and new locomotives.

-- Geopolitical Importance of the [Lobito Corridor] --

Since 2022, [Lobito Atlantic Railway] has been controlled by a consortium of European companies. The operator's ambition is to increase the transport capacity of this line to nearly 5 million tons and reduce transportation costs by 30%.

In terms of geopolitical challenges, the same report states that this funding highlights the US commitment to the western export route of the DRC's minerals. This route competes with the one used by Chinese mining companies leading to the Indian Ocean. The US International Development Finance Corporation (DFC - Development Finance Corporation) emphasized that its investment "helps ensure the reliability of supply chains and prevent them from being controlled by China and other strategic competitors." In addition, the US International Development Finance Corporation (DFC) also provided another loan of 1 billion dollars (approximately 913 million euros) this month to repair the DRC section of the [Lobito Corridor] (corridor de Lobito) between the Angolan border town of Dilolo and the center of the copper belt, Sakania.

Source: rfi

Original: toutiao.com/article/1852075053355015/

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