U.S. Commitment to Lobito Corridor Faces Setback Amid China’s Rise

AFRICAN BUSINESS AND ECONOMYJuly 23, 2025 at 8:22 AM UTC

TLDR

Despite pledging $2.5 billion for infrastructure projects along the Lobito Corridor, the Trump administration’s actions risk undermining the initiative
A new report by Senate Democrats warns that aid cuts and delays in disbursing a $553 million DFC loan could derail the project
Nearly $20 million in USAID-led programs—including transparency initiatives and support for local farmers—have been suspended

Despite pledging $2.5 billion for infrastructure projects along the Lobito Corridor, the Trump administration’s actions risk undermining the initiative. At the U.S.-Africa Business Forum in Luanda, American companies like Amer-Con announced projects including grain terminals, hydroelectric supply, and a 1,200-km transmission line across Angola and the DRC.

But a new report by Senate Democrats warns that aid cuts and delays in disbursing a $553 million DFC loan could derail the project. Nearly $20 million in USAID-led programs—including transparency initiatives and support for local farmers—have been suspended, leaving the corridor vulnerable to Chinese competition.

China is actively advancing its own regional infrastructure strategy, including the rehabilitation of the Tanzania-Zambia railway. With U.S. funding uncertain, Beijing could fill the gap and gain strategic access to critical minerals.

The Trump administration maintains that its commercial diplomacy model will yield results through trade and private sector partnerships. However, lawmakers argue that the withdrawal from development aid, health, and security cooperation may cost the U.S. both influence and access across Africa.

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Key Takeaways

The Lobito Corridor symbolizes more than a rail and infrastructure project—it represents the future alignment of African mineral exports. For the U.S., it’s a pathway to secure copper and cobalt from Zambia and the DRC via the Atlantic. For China, it’s a contest to redirect those flows eastward via the Indian Ocean. U.S. aid suspensions have slowed key supporting programs, from mobile money development to anti-corruption efforts. Meanwhile, China’s involvement continues to grow—combining infrastructure, health partnerships, and military training under its broader geopolitical strategy. With the Biden-initiated “Power Africa” initiative facing elimination, American firms risk losing $26 billion in contracts. The Democrats’ report warns that this pattern could become systemic: Chinese firms are already replacing U.S. pharmaceutical supply chains in Nigeria, and the collapse of trust with South Africa—threatened by Trump with 30% tariffs—is jeopardizing rare earth access at the Phalaborwa project. Whether critical minerals flow west or east will hinge on what happens next in Luanda, Pretoria, and beyond.

Economy

Africa

China

Lobito Corridor