Angola’s Lobito Corridor presents a unique and transformative opportunity for positioning the nation as a key logistics hub in southern Africa, writes Alexandre Silveira, MD of MSC Angola.
This corridor, originally established as the Benguela Railway, connects the mineral-rich regions of the Democratic Republic of Congo (DRC) and Zambia directly to the Atlantic port of Lobito.
Historically a key trade route, it experienced significant disruption during the unrest between 1975–2002, but has recently witnessed a robust revival. The total budget allocated for the revitalisation of the corridor stands at approximately $6-billion, supported by a coalition of international partners.
Strategically, Angola’s Lobito Corridor offers extensive business opportunities, especially within logistics and mineral exports. The region it serves – the Copperbelt in the DRC and Zambia – is renowned for its global leadership in copper and cobalt production, critical minerals essential for electric vehicle batteries and technological infrastructure worldwide.
From Angola’s perspective, the Lobito Corridor significantly aligns with the nation’s broader economic diversification strategy, outlined in the “Angola 2025 vision.” With a historical dependence on oil revenues, Angola’s shift towards enhancing logistics infrastructure marks a decisive step towards reducing vulnerability to global oil market fluctuations.
This shift also presents opportunities for international shipping and logistics companies such as MSC Mediterranean Shipping Company to expand their footprint and contribute to the corridor’s development.
At MSC, we recognise the transformative potential of the Lobito Corridor in strengthening Angola’s logistics sector. As a committed logistics partner, we facilitate the efficient export of key minerals and the import of essential goods, including industrial equipment and foodstuffs.
Since 2007, we have connected Angola to global markets through the ports of Luanda, Lobito, and Namibia. The Port of Luanda handles approximately 80 % of Angola’s container and general cargo, serving as a crucial maritime gateway for landlocked neighbours.
Today, MSC Angola stands as a leading exporter and the fourth-largest importer in the country, with our dedicated Angola Express service linking Lomé and Cape Town as strategic transshipment hubs. Our well-positioned cargo handling facilities ensure swift and reliable operations for both inbound and outbound shipments.
The corridor also offers a crucial Atlantic alternative for routing copper and cobalt exports – enabling faster access to key markets in the European Union, Latin America, and the US.
In addition to ocean freight, MSC offers value-added services including cargo consolidation, loading and reloading, packing and unpacking, as well as cross-loading between containers and trucks.
Partnerships between global logistics leaders like MSC and local Angolan organisations are important in achieving these ambitious goals. Since assuming operational responsibilities at Lobito in March 2024, MSC has spearheaded critical infrastructure upgrades and introduced more reliable shipping schedules.
These initiatives, coupled with targeted training programs and capacity-building partnerships with local stakeholders, are already transforming the region’s logistics landscape.
According to the International Monetary Fund (IMF), Angola’s GDP grew by 3.8% in 2024, surpassing earlier projections, and the recovery broadened to the non-oil sector.
According to the World Bank, the expected economic output from the Lobito Corridor is projected to boost Angola’s GDP by at least 2% annually over the next decade and facilitate an increase in regional trade volumes by up to 40%, positioning Angola as a key economic artery for landlocked countries in central Africa.
Despite recent shifts in American foreign policy and a broader reduction in African investment under the current administration, the US has reiterated its commitment to the Lobito Corridor. As stated by James Story, US chargé d’affaires in Angola, the US remains eager to collaborate on this project due to its strategic importance for global supply chains, particularly in securing access to critical minerals such as copper and cobalt.
Angola’s government is working towards its vision 2050. It is actively leveraging the Lobito project to stimulate economic growth and promote regional integration, particularly with neighbours such as Zambia and the DRC. By fostering an attractive environment for investment, the corridor becomes increasingly competitive, encouraging local enterprise and international collaboration.
Such initiatives not only benefit Angola but significantly boost intra-African trade, highlighting the corridor’s role as a catalyst for broader continental commerce.
The government is making significant and proactive efforts to ensure the full potential of the Lobito Corridor is realized. Recognising the corridor’s strategic importance, it has been diligently working to attract and facilitate the substantial further investment required in logistics infrastructure.
Through collaborative efforts with all stakeholders, the government is laying the groundwork for expanding the existing rail network with vital new connecting lines.
Simultaneously, there’s a strong focus on urgent improvements to key road networks, such as the critical National Road N100, which are essential to accommodate increasing transport volumes efficiently. These strategic investments are complemented by the government’s commitment to enhancing the capacity and infrastructure of the Port of Lobito, ensuring it is well-equipped to manage future cargo growth and solidify its role as a regional economic gateway.
The economic impact of the Lobito Corridor is profound, projecting substantial job creation across direct logistics roles and indirect sectors such as mining, agriculture, and renewable energy. It could create 30 000 direct and indirect jobs and help reduce poverty in DRC, President Felix Tshisekedi said recently in Angola.
Investments in rail and road infrastructure will further streamline operations, significantly reducing logistical bottlenecks and enhancing regional connectivity. These developments will not only boost Angola’s domestic economy but also significantly elevate its standing in regional and global trade.
This transformative infrastructure project aligns closely with the goals of the African Continental Free Trade Area (AfCFTA), which seeks to reduce trade barriers, increase intra-African trade as it is estimated that intra-African exports would increase by 109%, creating a single market of over 1.4 billion people. By enhancing regional connectivity and easing access to export routes for landlocked countries such as Zambia and the DRC, the Lobito Corridor supports AfCFTA’s vision of a more integrated and prosperous Africa.
These forecasts underscore the strategic importance of the corridor, not only for Angola’s diversification efforts but also for regional trade facilitation as envisioned by AfCFTA.
The Lobito Corridor stands as a beacon of opportunity for Angola. By capitalising on its strategic location, investing in robust infrastructure, and fostering strong public-private partnerships, Angola can decisively advance towards sustainable economic diversification and regional leadership, firmly establishing itself as an indispensable hub within Southern Africa’s economic landscape.