Lobito Corridor's Impact on Angola-USA Trade Relations

Abstract

As the Lobito Corridor infrastructure project, connecting Angola, Zambia, and the Democratic Republic of Congo to international markets through the Atlantic port of Lobito, nears completion, it is expected to bring about significant changes in the trade relationship between Angola and the United States. By providing a new transport link that enhances regional integration through rail, road, and associated infrastructure development, the corridor could reduce transportation costs, improve supply chain efficiency, and potentially expand Angola’s export capacity beyond oil. This paper will analyze the potential impacts of the Lobito Corridor on the volume and value of trade, export diversification, foreign direct investment, and overall economic growth between Angola and the United States. It will also consider the implications of the corridor for Angola’s efforts to transition to a more diversified and resilient economy, as well as the opportunities for American companies to invest in and benefit from the project. Additionally, the paper will explore the strategic importance of the corridor for the United States in terms of deepening infrastructure partnerships in Africa, diversifying global supply chains, and promoting ethical trade and good governance.