(train honking)
- [Narrator] This railway
is at the heart of a high stakes battle,
between the US and China for economic influence in Africa.
It's the Benguela railway,
part of the Libito Atlantic Railway,
which connects Angola to the heart of the Copperbelt
in the Democratic Republic of Congo.
The line is crucial for transporting minerals,
essential for things like EV batteries
and other green technologies to the rest of the world.
For years,
China has led Africa's infrastructure development,
pouring hundreds of billions of dollars
into projects like railways, ports, and roads.
But a successful US-backed bid
to restore the rail line could change power dynamics,
across the continent.
(upbeat music)
The Benguela railway isn't new.
It was built in 1902
and has always been crucial to Angola's trade,
but it was severely damaged during the country's civil war.
- If you go on the rail line,
you can see some blown up armored vehicles.
You can see rail cars that have been left to rust.
- [Narrator] After the war ended,
Angola needed to rebuild its infrastructure
and China stepped in to fill that need.
So in 2006, Angola agreed to a $2 billion deal with a group
of Chinese companies to rebuild the railway line.
But poor construction and upkeep led to rundown stations,
malfunctioning safety systems, offline servers
and frequent derailments on the train line.
- There's something like 10 derailments a year,
which is extraordinary.
The stations weren't well built.
There's all sorts of technologically equipment
that just isn't working,
and so the entire rail line really needs a rebuild.
- [Narrator] But this time,
Angola turned down a proposal
from the Chinese Government to renovate
and manage the same neglected railway.
Instead, it awarded several European companies,
a 30-year contract,
which the United States Government is likely to finance
with a $250 million loan.
The $1.7 billion project will fix
the train tracks and stations,
add over 1500 wagons and educate train operators.
It will also give countries involved in the project,
eager to advance their clean energy initiatives,
greater access to critical raw materials,
like nickel and cobalt.
- The big topic on Africa in Washington at the moment
is all about critical and strategic minerals
and security of supply.
- [Narrator] Demand for these elements
is expected to increase by 20 fold from 2020 to 2040,
which has fueled interest in the Libito Corridor
and the Democratic Republic of Congo,
the world's largest producer of cobalt.
The project is expected to be a key source
of economic opportunity for Angola's young population.
- So, hope that they will both feed the rest of the world
and also create jobs and opportunities inside of Angola.
- Historically, you can see when you create corridors,
they attract people,
especially if they're more economic opportunity.
- [Narrator] China's Belt and Road Initiative
has played a major role
in Africa's recent infrastructure development.
Launched by Chinese President Xi Jinping in 2013,
its goal is to boost China's global economic influence,
through infrastructure, trade and investment deals.
China loaned African governments over $160 billion
from 2000 to 2022, and Angola has received the most.
- The Chinese in Angola provided roads,
railways, football stadiums, suburbs of cities.
- [Narrator] But the initiative has faced criticism
from around the world over poor construction,
environmental impact and long-term economic sustainability.
And it's left some countries with significant debts.
- Those are debts that are very hard to pay back.
- [Narrator] In a response to The Journal,
the Chinese government said
that the Belt and Road Initiative
was not accountable for African debt.
In recent years, China's economy has taken a turn
and investments in Africa have plummeted.
Lending dipped below $1 billion in 2022,
hitting a nearly two decade low.
- China has been looking at its debt exposure in Africa
that it hasn't had the sort of returns
that it was expecting.
And so it's a lot more risk averse
in terms of its investment portfolio.
- [Narrator] This law gave the US an opportunity to step in,
but the US isn't just interested
in pushing back against China's influence in the region.
It also hopes to secure key resources
for future technological advancements.
- Copper in particular,
will prove vital as the country transitions
from old style energy production.
- [Narrator] The Biden Administration
has put a focus on strengthening commercial relations
with Africa.
In 2022, the government set out a plan
for a modern US-Africa partnership
and promise to invest $55 billion in the continent.
- The United States has been traditionally behind
in doing business in Africa,
and I think the Biden Administration's hoping
that will change and is trying to help that change.
- [Narrator] And while it is cautious of progress made
by other countries in the region.
- The Biden Administration has really made a point
of saying to African countries,
we understand you have longstanding relations
with the Chinese, with the Russians.
We're not saying you have to give that up,
but here's what we offer and we think you'll like it.
- [Narrator] And the offers don't stop
at the Lobito Corridor Project,
the US is funding solar energy projects
and other infrastructure projects in Angola,
but US investments in the region are minimal,
compared to what the Chinese Government has
provided over the past 20 years.
- Still doesn't measure up to what
the Chinese have done across Africa,
but it is a start
and I think that African countries
are starting to notice that that's happening.
- [Narrator] However, the Libito Railway Project,
might still benefit the Chinese.
- There's also a reality
that the Libito Corridor will not exclude
the export of minerals to China along it.
It's not a monopoly railroad for the United States
and the EU.
It's for free trade.
- [Narrator] And this corridor might just be the start
of more US investment in Africa.
- The final blueprint would be railroads
from the Atlantic to the Indian Ocean
- And the United States is helping fund the research
into whether that's feasible
and who knows, maybe someday might fund the project itself.
(upbeat music)