On December 4, 2024, His Excellency President Hakainde Hichilema will embark on an official visit to Angola, a pivotal move in Zambia’s pursuit of regional integration and economic transformation. While this trip may appear to be routine diplomacy, it carries immense strategic weight, particularly in advancing the Lobito Corridor—a transformative infrastructure project poised to redefine Zambia’s energy, trade, and export dynamics.
We analyse ahead, the significance of the visit, its economic implications, and its alignment with the copper producers long-term sustainable development vision. The Southern Africa nation is at a critical stage of its economic life cycle after years of constrained growth as it grappled with fiscal vulnerabilities whose intensity was amplified by the COVID pandemic and more recently the El Niño induced drought that have adversely weighed power generation and agriculture production. The red metal producer is in economic rebound mound and will seek to maximise opportunities in various sectors key of which include mining, whose outlook is positive in the medium to long term. This sector is anchor for Zambia as it then ignites demand for a plethora of other sectors such as energy, real estate, small to medium sized business, infrastructure and transport sectors to cover air, rail and road. Angola is a very strategic to the copper producing nations agenda in many ways.
The Lobito Corridor: A Gateway to Regional and Global Opportunity
The Lobito Corridor on the Western side is more than a railway; it is a critical trans-African infrastructure network connecting the Angolan port city of Lobito to Kolwezi in the Democratic Republic of Congo (DRC). For landlocked Zambia, it presents a vital alternative trade route to the Atlantic Ocean, with transformative potential across three key areas:
A. Reducing Energy Costs Through Angolan Oil
Energy costs remain a major challenge for Zambia, heavily reliant on costly Middle East crude oil imports.
President Hichilema’s visit underscores Zambia’s strategic alignment with Angola’s $1.5 billion Sonangol refinery project, expected to refine over 200,000 barrels of oil daily by 2026. Through the Lobito Corridor, refined oil can be transported efficiently to Zambia, particularly Solwezi, reducing fuel costs, stabilizing the energy market, and easing the cost of living.
This marks a shift from unsustainable fuel subsidies that historically strained Zambia’s finances and depreciated the Kwacha. The trip provides an opportunity to cement Zambia’s participation in this transformative venture and ensure the nation captures maximum value from its investment.
B. Expanding Export Markets for Zambian Goods
The Lobito Corridor facilitates not just imports but also opens export pathways for Zambian goods, particularly agricultural products, to Angola’s burgeoning economy.
Between 2021 and 2023, Zambia doubled its agricultural exports from $500 million to $1 billion. The government’s ambitious $2 billion target by 2026 hinges on unlocking new markets and trade routes. By linking Zambian farmers to Angolan consumers, the Corridor boosts demand for crops and livestock, spurring rural development, creating jobs, and enhancing livelihoods.
C. Improving Global Market Access for Critical Minerals
As home to vast reserves of copper and cobalt—key inputs for the electric vehicle (EV) industry—Zambia’s mining sector has long faced export bottlenecks due to limited infrastructure.
The Lobito Corridor provides a direct route for these minerals to the Atlantic, enabling easier access to North American and European markets. This diversification reduces dependency on China, strengthens Zambia’s negotiating power, and attracts investment into mining and value-added industries like battery manufacturing, positioning Zambia as a regional EV supply chain hub.
Strategic Timing and Partnerships
Hichilema’s visit aligns with the Lobito Corridor Summit, a high-level gathering of leaders from Zambia, Angola, DRC, Tanzania, and the United States, including U.S. President Joe Biden.
The summit celebrates progress on the Corridor and reinforces partnerships under the Partnership for Global Infrastructure and Investment (PGII). For Zambia, it is a timely opportunity to advocate for investments, concessions, and partnerships that will expedite the Corridor’s development while delivering tangible benefits to its citizens.
A Vision for Regional Prosperity
Hichilema’s engagement in Angola transcends Zambia’s borders—it is a step toward fostering a more interconnected and prosperous Southern Africa. The collaborative efforts of Angola, Zambia, DRC, and Tanzania demonstrate the power of regional partnerships in driving shared growth.
By leveraging the opportunities presented by the Lobito Corridor, Zambia stands to achieve:
- Lower energy costs through sustainable access to Angolan oil.
- Increased agricultural exports to Angola and beyond.
- Diversified and enhanced mineral export pathways to global markets.
Hichilema’s visit to Angola is not merely diplomatic—it is a strategic move to secure Zambia’s economic future. Through high-level negotiations, strengthened bilateral ties, and proactive engagement, Zambia is positioning itself to reap the benefits of regional collaboration and global connectivity.
This trip underscores a broader vision: transforming Zambia into a competitive and resilient player in the global economy while fostering regional prosperity.
The Kwacha Arbitrageur
