The U.S. has provided 553 million US dollars in financing for the refurbishment of Angola’s Benguela railway line, a key component of the Lobito corridor aimed at linking copper and cobalt mines in Zambia and the Democratic Republic of Congo to the Atlantic coast, Reuters reported.

The move is part of Washington’s broader strategy to secure strategic minerals and counter Chinese-backed infrastructure projects in Africa.

The Development Finance Corporation (DFC) signed the loan with a consortium including Portugal’s Mota Engil, commodities trader Trafigura, and rail operator Vecturis SA. The Development Bank of Southern Africa will contribute an additional 200 million US dollars.

The project includes the rehabilitation and operation of the existing Lobito port, increasing its capacity tenfold to 4.6 million metric tons and reducing transport costs by up to 30 percent. Lobito Atlantic Railway, which won a 30-year concession to operate the line in 2022, plans to invest in additional rolling stock and staff training using the loan.

The Lobito corridor will also involve constructing 515 km of railway in Zambia and 315 km in the Democratic Republic of Congo, connecting to Angola’s 1,300-km Benguela line. Lagos-based Africa Finance Corporation, the lead developer, has begun soliciting contractors for the Zambia segment and expects to finalise further financing deals by the end of 2026.

The corridor is positioned as a U.S.-backed alternative to the China-backed Tanzania-Zambia railway, which China Civil Engineering Construction Corporation is investing $1.4 billion to upgrade, linking mines to Tanzanian ports.

“The deal underscores the United States’ commitment to strategic infrastructure that promotes regional trade, economic growth, and long-term U.S.-Africa cooperation,” the DFC said.