US makes US$2 billion commitment to Angola as oil-rich nation eyes move beyond Chinese funding model

Angola was the biggest African recipient of Beijing’s funding, but a fall in oil prices has left the country struggling to service its debts

The US is now investing in infrastructure and a rail link between Angola and its neighbours as it seeks to present itself as a better alternative to China

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Angolan President Joao Lourenco has promised to diversify the country’s oil-dependent economy and reduce its excessive reliance on China. Photo: AFP

Published: 4:00pm, 9 Dec 2023Updated: 4:22pm, 9 Dec 2023

The United States is set to invest more than US$2 billion in Angola as it seeks to pitch itself as a better alternative to China, which has bankrolled most of the country’s reconstruction for the past two decades.

President Joe Biden said the US had committed more than US$1 billion this year to fund solar power, bridges and internet infrastructure. It is also offering a further US$1 billion to fund the strategically important Lobito Corridor, running from Zambia to the Angolan coast via the Democratic Republic of Congo.

The US International Development Finance Corporation had initially advanced US$250 million for a feasibility study to refurbish the 1,300km (800-mile) Lobito Atlantic Railway line, as part of the Lobito logistics corridor.

Washington is also working with the European Union to build a new 800km rail line between Angola and Zambia as it eyes critical minerals such as cobalt and copper from the DRC and Zambia for its green energy transition, including the electric car industry.

“This first-of-its kind project is the biggest US rail investment in Africa ever, one that’s going to create jobs and connect markets for generations to come,” President Biden said when he hosted Angolan President Joao Lourenco last week at the White House.

The US investment in Angola is part of the Partnership for Global Infrastructure and Investment, launched by the Group of 7 last year with the aim of providing US$600 billion by 2027 to counter China’s Belt and Road Initiative.