Lobito minerals corridor on the agenda in Biden's Angola visit

US Vice President Kamala Harris' recent visit to Angola has sparked discussions around the crucial role of the Lobito Minerals Corridor in the country's mineral exports and the broader African mining landscape. The visit is seen as a strategic move by the US to secure access to critical minerals such as lithium, copper, and cobalt, essential for the global green transition. CNBC Africa's Theo Acheampong, Head of Markets and Research at Critical Minerals Africa Group, sheds light on the implications of this visit for Angola and the African continent as a whole. Traditionally, the US has not been a major investor in African mining, focusing on other sectors like garments and pharmaceuticals. However, with the increasing demand for green minerals, there has been a surge in US investments in African mining projects. Acheampong predicts a continued rise in such investments as the US works to diversify its supply chains away from other regions. This trend is expected to lead to more exploration, mining, and processing projects in collaboration with African governments, ensuring value addition and beneficiation for the continent. The US's interest in the African mining sector is also driven by the need to counter China's dominant presence in the region. China has established significant investments in countries like Zambia and the Democratic Republic of Congo, particularly in the copper and cobalt sectors. By promoting sustainable and ethical mining practices, the US aims to carve out its space in the African market. Acheampong emphasizes the importance of responsible mining and value addition to break the cycle of raw mineral extraction that perpetuates poverty in African nations. Although Angola has historical ties and indebtedness to China, Acheampong believes that the country can balance its relationships with both China and the US. By engaging multiple partners with diverse objectives, Angola can safeguard its national sovereignty and leverage comparative advantages for its economic development. Acheampong underlines the significance of defining national interests and aligning them with the goals of various partners to drive sustainable growth. To negotiate favorable terms and maximize benefits from its mineral wealth, Angola must take proactive steps. Acheampong suggests that the country invest some of its oil revenue in mining projects to increase its equity stake and ensure skills development and training for local communities. He stresses the importance of regional collaboration and the establishment of processing facilities to capitalize on the comparative advantages of different countries within the minerals corridor. As Angola navigates its position in the global critical minerals market, it faces a pivotal moment to shape its future by making strategic partnerships and prioritizing sustainable practices that benefit its people and contribute to regional development.