Biden’s $800 Million Investment in Angola’s Railways vs. Nigeria’s $4 Billion Kano-Maradi Railway....Read Full Article>>
President Joe Biden’s visit to Angola has raised eyebrows, particularly when comparing the strategic Lobito Corridor railway project in Angola with Nigeria’s ambitious but costly $4 billion Kano-Maradi railway project.
While the U.S. is investing $800 million to enhance the Lobito Corridor, a crucial trade route linking Angola to the Democratic Republic of Congo (DRC) and Zambia, Nigeria is pouring billions into a much smaller rail project. Why is this disparity in infrastructure investment? And why does Biden choose Angola over Nigeria?
What is the Lobito Atlantic Railway Project?
The Lobito Atlantic Railway, funded by the U.S. and the European Union, will upgrade existing rail networks in Angola to speed up the export of cobalt, copper, and other essential minerals from the
DRC’s Kolwezi mining town to global markets. This project is vital for enhancing the region’s economic ties, and the U.S. has invested $550 million to kickstart it.
At 1,300 kilometers (800 miles), the railway promises to connect Angola with Zambia and the DRC, making it a key part of Africa’s mineral export infrastructure. Portuguese company Trafigura, leading the project’s operations, has already begun shipping minerals to the U.S.
The Costly Nigerian Rail Project
In stark contrast, Nigeria has committed $4 billion to a railway line linking Kano to Maradi in Niger. Despite its smaller scale—just 394 kilometers (about 245 miles)—this rail line is set to cost five times more than the Lobito project, which connects three countries and an Atlantic port.
Critics question the economic value of the Maradi railway, given the lack of clear economic benefits for Nigeria. The project has also faced delays, with its expected completion pushed to 2025. Why such a high price tag for a rail line connecting Nigeria to a landlocked country?
Nigeria’s Railway Challenges and Lack of Regional Connectivity
Nigeria’s rail infrastructure has faced challenges in serving its northern states. The country’s north currently has only one rail line from Abuja to Kaduna, and no rail lines connect the south to the southeast or south-south regions. This highlights a missed opportunity for broader regional connectivity within Nigeria.
The Maradi railway, which is designed to enhance trade between Nigeria and Niger, raises questions about its true economic impact. The lack of a broader national or regional economic justification for the project has left many wondering why the government opted for such an expensive and narrow-scope initiative.
Why is Biden Visiting Angola?
Biden’s decision to prioritize Angola, which is investing in regional infrastructure projects with international backing, makes sense given the geopolitical and economic realities. With U.S. interests in cobalt and copper growing due to their importance in the green energy transition, investing in Angola’s rail network aligns with American goals of securing mineral supply chains in Africa.
On the other hand, Nigeria’s $4 billion Maradi railway, though initiated under former President Buhari, is not without controversy. The lack of clarity regarding its economic benefits, coupled with Nigeria’s ongoing struggles with national security and governance issues, raises doubts about the project’s viability.
Tinubu’s $13 Billion Lagos-Calabar Highway: A New Challenge
Further complicating Nigeria’s infrastructure picture is President Bola Tinubu’s $13 billion Lagos-Calabar coastal highway project. This proposed 700-kilometer road costs more than Africa’s longest transcontinental highway (Cairo to Cape Town), which is only $1.6 billion within Egypt. The Lagos-Calabar road’s cost per kilometer is exorbitantly high, leaving many questioning the rationale behind such an expensive project.
The Economic Implications for Nigeria
Nigeria faces a stark contrast between its domestic investment in infrastructure and the international backing that Angola is receiving. The U.S. and EU have committed substantial resources to Angola’s development, recognizing the long-term economic value of the region’s resources and trade routes. Meanwhile, Nigeria’s projects, particularly the Maradi railway, are raising concerns over wastefulness and mismanagement in an economy already strained by other pressing issues.
Conclusion: Why Biden Prefers Angola Over Nigeria
Given the U.S. focus on securing strategic trade routes and mineral resources, it’s clear why Biden would prioritize Angola over Nigeria. Angola’s railway project offers a tangible path for economic growth, trade, and mineral exports, while Nigeria’s rail and road projects—despite their grand promises—remain mired in cost overruns and unclear benefits……Continue Reading ....Read Full Article>>
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