The US International Development Finance Corporation (DFC) has reaffirmed its $500-million commitment to fund the Lobito Corridor project, with the focus on upgrading a 1 300 km railway line from the Lobito port, in Angola, to Luau, on the Democratic Republic of Congo (DRC) border.

The project is intended to facilitate the transportation of critical minerals – such as copper, cobalt and lithium, from Central African nations to global markets – thereby expanding the supply of critical minerals used in advanced technologies, batteries and defence equipment.

The Lobito Corridor project is therefore significant in that it aligns with US strategic goals to offer a high-standard, market-driven alternative to develop secure supply chains and promote economic development.

The corporation invests in private-sector partners that share in its goal to deliver high-quality projects and financing solutions to meet the enduring needs of important markets, including in Central Africa.

The DFC has a key role to play in providing investment to support the production, processing and transportation of critical minerals. As such, the DFC says the corridor will provide an independent, efficient and cost-effective route to market for minerals from one of the most important mining regions in the world.

The corporation will conduct robust due diligence as part of its investment process to ensure alignment with its mandate to invest in commercially viable projects that deliver value for US taxpayer funds.

Collaborative Focus, Environmental Sustainability

To navigate the complex geopolitical landscape surrounding the Lobito Corridor, the DFC’s investment – through private-sector partners – aims to promote market-based solutions to challenges in emerging markets, and also closely track geopolitical developments in the region to assess the impact of its investment.

It also closely collaborates with the US State Department and other US government partners to advance work towards shared objectives.

With the added imperative of promoting meaningful engagement with local communities throughout the project life cycle, the DFC says it emphasises respect for human rights, including labour rights, particularly the rights of indigenous peoples and local communities and, thereby, aims to avoid, reduce and mitigate impacts on their livelihoods, culture and traditional practices.

The DFC’s investment processes include reviews of environmental and social risks, as well as management systems associated with all the projects it supports.

For activities within the scope of the DFC-funded project, the Lobito Atlantic Railway is also required to adhere to the DFC’s environmental and social standards and requirements. These standards aim to avoid, reduce and mitigate potential adverse impacts, promote positive social outcomes and align with international best practices.

The corporation applies performance standards that address various aspects, including pollution prevention, resource management, biodiversity conservation, labour rights, community health and safety, and human rights.