The African Finance Corporation (AFC) has obtained a $320 million financing agreement from the Italian government in order to expedite the conclusion of the Lobito Corridor.

The groundbreaking infrastructure project establishes a strategic export route for critical minerals such as copper and cobalt by connecting the Lobito port in Angola to Zambia and the Democratic Republic of the Congo (DRC).

In Rome, the financing agreement was formalized during a bilateral economic summit, and officials from both continents praised it as a “win-win partnership.”

The project’s objective is to enhance trade and modernize transport infrastructure in the Southern Africa region, thereby offering an alternative to the mineral export channels that are dominated by China.

The Lobito Corridor is essential for industrial development and regional integration, in addition to trade.

The rail and road corridor will attract new investments in mining and manufacturing along the route, reduce export timelines, and lower logistical costs once it is operational.

Samaila Zubairu, the CEO of AFC, stated that the initiative is indicative of a more comprehensive vision to leverage Africa’s natural resources for the advancement of the continent.

“It is time to unlock the value of our mineral resources through well-planned infrastructure that prioritizes our people, rather than solely through extraction,” he stated.

The Lobito Corridor has the potential to establish Africa as a more competitive and sovereign participant in global supply chains.

This is particularly as Western countries seek non-Chinese sources for critical materials, as the global demand for energy transition minerals continues to increase.