In contemporary discussions about development, exploration, and business in Africa, Angola frequently emerges as a focal point. With the Just Energy Transition underway and the global superpowers vying to secure a steady supply of rare metals for the green revolution, Angola has become a key strategic focus for the USA, China, and the European Union (EU).
Both the USA and the EU are heavily investing in Angola to develop the necessary infrastructure for transporting large quantities of minerals, such as copper, cobalt, and nickel, from the Democratic Republic of the Congo (DRC) and north-western Zambia to the Lobito port on Angola’s west coast. This growing international importance of Angola was underscored by President Joe Biden when he hosted President João Lourenço of Angola at the White House in late November last year. Biden highlighted that Africa is central to America’s plans, and no country in Africa is more important than Angola.
During Lourenço’s visit, the leaders discussed cooperation on critical issues such as trade, energy, climate, and a USD 1-billion U.S.-backed infrastructure project to boost Angola’s economy. Much of America’s funding will focus on reviving the historic Benguela railway line and the associated Lobito Corridor. This corridor offers an alternative strategic route to export markets for Zambia and the DRC and represents the shortest route linking these countries to the sea. Within Angola, the Corridor will connect 40% of the country’s population, stimulating large-scale investments in agriculture and retail in the provinces of Benguela, Huambo, Bie, and Moxico.
In the DRC, the Corridor links the mining provinces of Tanganyika, Haut-Lomami, Lualaba, and Haut-Katanga, where copper concentrates are currently transported to Zambia for smelting and further export. Angola’s strategic significance extends beyond the Lobito Corridor. The country is rich in natural resources, hosting spectacular mineral deposits, especially in the underexplored regions of the Moxico, Lunda Sul, Cuando Cubango, Cunene, and Huambo provinces.
Angola is increasingly seen as a top exploration destination in Africa. The presence of large mining companies like Anglo American, Ivanhoe, and Rio Tinto illustrates Angola’s potential to become a major mining hub within the next few years. Not only major companies but also several junior mining companies are venturing into Angola, having been awarded exploration licenses for lesser-known minerals. The renewable energy boom and new technologies have driven up demand for battery metals and other minerals used in high-tech innovations.
UK-based Pensana is one of the pioneers developing a mining project from scratch in Angola, which many experts consider the new mining hotspot in Africa. Pensana is advancing the development of its Longonjo neodymium-praseodymium oxide (NdPr) project near Huambo in central Angola.
Meanwhile, Angola has climbed significantly in the Fraser Institute Investment Attractiveness Index, moving from third bottom in 2022 to around halfway this year. The index, which combines the Policy Perception Index and the Best Practices Mineral Potential Index, ranks regions based on factors such as regulations, taxation, infrastructure quality, and other investment-related matters. Angola’s rise from 59th out of 62 regions in 2022 to 47th out of 86 regions in 2023 reflects attractive government policies and growing interest in the country’s untapped exploration potential. Tim George, CEO of Pensana, remarked that Angola’s recognition as an attractive mining destination is long overdue.
In addition to its mineral wealth, Angola’s road networks are set for transformation. The Africa Finance Corporation (AFC) announced a €381 million project to improve accessibility in remote areas, support industrial and commercial activity, reduce transport costs and travel times, and create jobs. The project includes the construction of 186 bridges and enhancements to Angola’s road network. AFC, acting as the mandated lead arranger, has committed €85 million, with additional financing from the Export-Import Bank of the U.S. and the U.S. Private Export Funding Corporation. Key partners include Standard Chartered Bank, Portuguese civil engineering firm Conduril, and U.S. construction giant Acrow.
The signing of this project took place at the US-Africa Business Summit in Dallas, Texas, organised by the Corporate Council on Africa. AFC Board Member and Head of Financial Services, Sanjeev Gupta, emphasised that the project supports Angola’s agricultural ambitions and prioritises the development of climate-resilient infrastructure, contributing significantly to Angola’s climate adaptation plan.
In October 2023, AFC was appointed lead project developer for the Lobito Corridor, connecting northwest Zambia to the Benguela rail line in Angola and ultimately to the port of Lobito. This project involves collaboration with the U.S. government, the European Union, the African Development Bank, and the governments of Angola, the DRC, and Zambia. AFC’s investment in the new roads project exemplifies the Lobito Corridor consortium’s commitment to enhancing rural transport connectivity, linking communities to the larger regional corridor.
Pensana plc (LON:PRE) explores and mines neodymium, praseodymium, and rare earth minerals. The Company’s flagship assets are the Saltend rare earth refinery project in the United Kingdom and Longonjo neodymium and praseodymium (NdPr) Project in Angola.
