Scott Nathan, CEO of the U.S. International Development Finance Corporation (DFC), joined U.S. President Joe Biden on a visit to Angola, where the U.S. government unveiled a significant commitment. A loan of up to $553 million will be used to enhance the Lobito Atlantic Railway, a vital project aimed at improving infrastructure in the region. This loan will help rehabilitate the Lobito port and upgrade the rail line running from Lobito to Luau, spanning 1,300 kilometres. The initiative aims to strengthen mineral supply chains, boost rail transport capacity, and reduce freight costs and transit times. President Biden highlighted the strategic importance of the project, describing it as a major step towards creating Africa’s first transcontinental railway, connecting the Atlantic to the Indian Ocean.
Nathan emphasised that these investments, particularly along the Lobito Corridor, are designed to promote sustainable economic growth and advance U.S. strategic objectives. He stated that the DFC’s projects across Angola and neighbouring countries align with the U.S. government’s focus on building robust infrastructure, enhancing commerce, and diversifying critical supply chains.
In addition to the railway project, several other transactions were announced during the visit, reinforcing the U.S. government’s ongoing commitment to economic development and regional security. The DFC has already invested over $700 million in Angola since the Biden administration began, with further investment opportunities being explored in Angola, Zambia, and the Democratic Republic of the Congo (DRC) along the Lobito Corridor.
Among the additional initiatives, the U.S. committed up to $150 million in political risk insurance for water treatment plants aimed at providing access to clean water in underserved areas of southern Angola. Another significant commitment involved a $40 million loan to Africa GreenCo Group Ltd. to support renewable energy projects across Southern Africa, including Zambia, Namibia, and South Africa. A $13 million equity investment in the African Rivers Fund IV will also support small and medium-sized businesses in frontier markets in the region.
Further financial commitments included a $6 million loan guarantee to Angolan microcredit company Kixicrédito S.A., facilitating lending to micro, small, and medium-sized enterprises in Angola’s agriculture sector. Additionally, $5 million was allocated to Community Markets for Conservation Limited to expand sustainable food processing practices in rural Zambia.
Technical assistance grants were also announced, including $3.4 million for Pensana, aimed at advancing a rare earth mine and refinery project in Angola, and $3.2 million for Chillerton to support a green copper mining project in Zambia. The DFC also expressed interest in supporting the development of a nickel-copper-cobalt mine in Tanzania and a food and agricultural processing project in Angola’s Carrinho Group.
Africa remains a key focus for the DFC, with over $13.1 billion invested across the continent, making it the largest portfolio for the corporation. In 2023 alone, the DFC committed more than $3.2 billion in new financing across 72 transactions, underscoring the importance of its engagement in Africa’s economic future.
This significant investment package illustrates the U.S. commitment to fostering long-term economic development in Africa, reinforcing infrastructure, and enhancing strategic partnerships across the continent.
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.
