Agriculture a big winner in Angola’s Lobito Corridor

Agriculture a big winner in Angola’s Lobito Corridor

Agriculture is one of the focus areas of the USA’s investment in the Lobito Corridor.

By Leon Louw founder of WhyAfrica and editor of the WhyAfrica magazine   

This week the USA and Angola co-hosted the Partnership for Global Infrastructure and Investment (PGI) Lobito Trans-Africa Corridor Summit, bringing together leaders from the Democratic Republic of the Congo (DRC), Tanzania, and Zambia, as well as the Africa Finance Corporation (AFC).

At the summit, President Biden announced more than USD560-million in new funding, including commitments expected to generate at least USD200-million in additional private sector capital, for infrastructure projects along the Corridor, bringing the total for U.S. investments to more than USD4- billion.

The White House said in a statement yesterday that these investments together with those from G7 partners and regional development banks, brings the total international investment in the Lobito Corridor to a figure exceeding USD6-billion.

These investments will be mobilised towards new and continuing projects that support the economic potential and development impacts of the Corridor across multiple interconnected sectors, including transportation and logistics, agriculture, clean energy and associated supply chains, health, and digital access.

Agriculture a big winner

The agricultural sectors of Angola, the DRC, Zambia and Tanzania are set to benefit significantly from the development and expansion of the Lobito Corridor.     

The White House says in its statement: “In support of U.S. efforts to accelerate agricultural-led economic growth in Angola and our partners across the Lobito Trans-Africa Corridor, the United States is investing in value-added food processing and connecting farmers to global markets.  These investments also deliver on President Biden’s commitment under the U.S.-Africa Partnership to Promote Food Security and Resilient Food Systems, to step up our investments to build more resilient food systems in Africa and to unlock Africa’s enormous agriculture production potential.”

During President Biden’s visit this week, he met with businesses that are investing in the Lobito Trans-Africa Corridor enabled by U.S. support.

He visited the Lobito production facilities of the Carrinho Group, Angola’s largest food producer, which is rapidly expanding the network of family farmers from whom it sources raw produce for products sold across the country.

Recently the first shipment of Carrinho food products were transported along the Lobito Atlantic Railway line to be sold in the DRC, supporting regional food security.

To enhance agriculture expansion, USAID has partnered with Carrinho through an existing USD5.5-million program and public-private partnership focused on women’s empowerment, to facilitate the offtake of grain and crops grown by communities along the Corridor.

In November 2024, DFC signed a non-binding Letter of Interest to explore a loan that would support Carrinho to purchase and install grain storage equipment to reach more farmers along the rail Corridor and key hubs.

Complementing these investments is the previously announced Export-Import Bank of the United States (EXIM) financing to build 186 rural bridges.  This financing will further support thousands of smallholder farmers to participate in this sustainable agriculture value-chain as Carrinho grows its farmer network to two million farmers by 2030.

There is a long list of additional investments and agricultural projects. Please see the full statement by the White House in the WhyAfrica library on our website.

The Benguela Railway in Angola is part of the larger Lobito Corridor. The railway, which runs from Lobito on the Atlantic coast to the border with the DRC, is a critical part of this corridor. It was originally built to facilitate the transportation of goods, particularly copper and other minerals, from the interior of southern Africa to the port for export. The railway forms a vital link in the Lobito Corridor’s infrastructure, promoting regional trade and economic connectivity.

Last year, WhyAfrica, with he backing of its premier sponsor Remote Exploration Services, drove about 220km alongside the railway line from Luacano to Luena in the Moxico Province of Angola as part of the 45-day WhyAfrica Road Trip to find out more about the Lobito Corridor.

Agriculture a big winner in Angola’s Lobito Corridor