The U.S. State Department announced this week that Washington is proceeding full steam ahead with its proposal to renovate and expand the Lobito Corridor, a railway that will pass through mineral-rich Zambia and the Democratic Republic of the Congo and conclude at an Atlantic port in Angola.
Previous attempts by other powers to invest in infrastructure in Africa with such lofty goals have failed. China has been attempting, with varying degrees of success, to strengthen its position in Africa and improve trade connectivity through its investments in ports and railways.
Beijing’s Belt and Road Initiative (BRI) has under criticism for debt-ridden and incomplete projects. This has led to a perceived shift in focus towards what Chinese President Xi Jinping has referred to as a “small and beautiful” strategy.
The U.S., the European Union, the three African countries, and two financial institutions signed a memorandum of understanding last month to build the partially developed Lobito Corridor, signalling the West’s entry into the picture.
A six-month feasibility study is anticipated to begin by the end of the year, according to Helaina Matza, the acting special coordinator for the Partnership on the Global Infrastructure Investment, or PGII, who presented plans in an online media conference this week. According to her, the 800 kilometres (500 miles) of new track are expected to be built in five years at a cost of more than $1 billion.
Matza expressed optimism when asked how the United States intended to maintain the project over the long run and steer clear of the pitfalls other foreign nations making while pursuing infrastructure projects on the continent.
She clarified, “It’s not all concessional financing going straight to governments,” adding that the Africa Finance Corp., a private partner, is also involved and will be presenting “a plan around capacity development as well as a plan for operation and maintenance.”
She stated, “I think we’ve learned from mistakes and projects that over the years, frankly, we’ve helped bail out because they needed refurbishment a little too quickly,” without specifically referencing China.
In an email answer to VOA, Liu Pengyu, the spokeswoman for China’s Embassy in Washington, stated that there is “broad space for cooperation in the field of global infrastructure, and there is no question of various relevant initiatives contradicting or replacing each other.”
Liu also refuted the recurring accusation that Beijing is attempting to establish spheres of influence through the BRI and its projects.
“Any calculation to advance geopolitics in the name of infrastructure development is not welcome and doomed to fail,” he stated.
Implications for the BRI?
The $4.7 billion Standard Gauge Railway in Kenya, which links the port city of Mombasa with the country’s capital, Nairobi, began service in 2017. It was one of China’s biggest BRI investments.
In order to supply essential minerals to the shore, the railway was intended to connect to Uganda, a neighbouring country; however, it never made it that far, which caused difficulties for the cargo side of the company. The Kenyan government announced this week a significant rise in passenger fees, citing increased gasoline costs.
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Following President William Ruto’s travel to China last month to pursue a $1 billion loan to fulfil outstanding infrastructure projects, the announcement was made. The project has also drawn criticism from some Kenyans for not employing enough locals to run the railway.
Researchers at the international think tank Overseas Development Institute Yunnan Chen said the presence of the BRI has already had an impact when asked if it will assist shape the upcoming US/EU plan.
She noted that the EU has the Global Gateway and the G7 has the Partnership for Global Infrastructure and Investment. “While the BRI can be criticised on many areas, one success it’s certainly had is to raise the profile of infrastructure in development, and crowded in greater interest — and welcome competition — in this space,” she said. Last month, in Brussels, the first Global Gateway forum took place and the Memorandum of Understanding for the Lobito Corridor was signed.
“The fact that U.S. has taken such a deep interest in Angola — a major BRI partner and one of the largest recipients of infrastructure lending from China — is a clear sign they want to ramp up the competition directly in China’s spheres of interest,” she stated.
Even if certain Chinese railway projects have drawn “legitimate criticism,” according to Chen, it might be challenging to turn a profit on passengers and goods alone if a railway project is not connected to the mining industry.
“The Lobito Corridor may do better than some of the East African projects, since they will likely be directly connected to minerals/mining projects that justifies the freight, but it will be a test to see how the U.S. and EU will tackle the challenges that rail construction brings,” she stated.
These difficulties include the effects on society and the environment as well as managing the railway after it is finished—all issues that the Chinese have encountered. The West’s current performance will be intriguing to watch, according to Chen, “given the emphasis on higher standards.”
“Our ethos for any sort of infrastructure we invest in is that the project is transparent,” stated Matza, the interim PGII coordinator.
She stated that the United States seeks to guarantee that “the whole corridor is successful and that people who live along that corridor can participate not only in commerce but in other activities that really benefit the economic development of themselves and their countries.”
Africa’s perspective
So, when it comes to infrastructure investment, which country do regular Africans trust more—China or the United States?
This week, VOA posed that topic to the people of Johannesburg to get their opinion.
29-year-old musician Luyolo Yiba was drinking at a pavement cafe when he became sceptical.
He added, “I doubt the U.S. is primarily concerned with helping the African people,” and that he expected the money to be lost to government corruption in Africa. Both are looking at stealing minerals, so it’s tough to claim this one is better than that one.
A 40-year-old businessman named Zoyisile Donshe stated he doesn’t believe competition is necessary for influence in Africa.
“They see that Africa is the future,” he stated. “I adore both China and America. Opportunities are being created in Africa by them. Most Africans, I believe, would rather that they cooperate.”
When asked if there was any chance that the Lobito Corridor might be connected to any Chinese-built railroads in the area, Matza replied it was too soon to tell, but he did not exclude the possibility.
“A lot of work is going on; there might be a Tazara refurbishment,” she remarked, alluding to the railway that connects Tanzania and Zambia.
Many people are discussing the possibility of building a second rail line that would run into Mozambique and continue south. “We’re approaching this piece by piece, understanding what we can support, fund, and design together.”
