The economic potential of the Lobito Corridor railway project is currently a key focus area for Angola, the Democratic Republic of Congo (DRC), Zambia and other development partners.
Despite the United States’ (US) nationalistic philosophy under the banner “America-First”, it is the main development partner of the Lobito corridor project.
The Lobito railway links the mineral-rich western regions of the DRC to the Lobito port situated on the western coast of Angola.
Currently, the railway does not have a direct link with Namibia but is located approximately 613km away from Namibia’s northern railway line at Oshikango.
The 1 300km railway line stretches from Lobito Port through Huambo, Kuito and Luacano on the Angolan side towards Kolwezi and Chingala in the DRC. It is also expected to reach Ndola, in the Copperbelt region located in northwestern Zambia.
Since 2022, the US, under president Donald Trump, committed US$200 billion for the infrastructure of this ambitious project and pledged to mobilise an additional US$600 billion.
The European Union offered their backing along with various global companies (Aljazeera). It is estimated that the DRC’s untapped mineral deposits are valued at over US$24 trillion, which explains why the country attracts such high-end investments.
Various empirical studies indicate that raw mineral exports create more value in developed countries due to their advanced industrial capacity, while the exporting third-world countries experience high capital outflows, low job creation, lack of development, and a poor standard of living.
In addition, regional growth will be stalled, and there will be an aversion to the notion that such crucial infrastructure will become access routes for cheap imports within the region.
However, member states should elevate their focus on mineral beneficiation at a regional level to achieve realistic and long-term economic benefits within their regional economic communities (RECs) and to enhance the capacity of the African Continental Free Trade Area.
If the primary focus of the Lobito railway is to ship out raw mineral cargo, such an approach may weaken regional trade relations and severely disrupt the existing flow of trade.
This might also have a negative impact on long-term industrial plans in the region.
With its stable political climate, stable infrastructure, and investment-friendly atmosphere, Namibia is well positioned to attract various industrial activities, manufacturing initiatives, value addition, and mineral beneficiation opportunities through the Lobito supply chain.
Namibia can also leverage its proximity with South Africa and Botswana to extend its regional industrial and logistical footprint.
According to the Namibia Statistics Agency (NSA) (2025), Namibia’s gross domestic product (GDP) was N$269 billion (market prices, current).
The income from uranium mining dropped from N$9.7 billion to N$7.3 billion (-33%), diamond mining reduced from N$8.1 billion to N$6.5 billion (-24%).
Namibia’s manufacturing sector contributed only N$27 billion to GDP (11%), while mining was N$38 billion.
The northern regions make up 46% of the total unemployment ratio and 54% of Namibia’s total population (NSA, 2023). It is reported 75% of the inhabitants in these areas are highly reliant on crop farming and livestock as a means of survival.
Namibia should implement innovative measures for manufacturing and to boost exports to achieve stable economic growth and lower the rate of unemployment, especially in the regions.
As an important regional player that hosts a strategic port and a stable road network, Namibia draws minimal financial benefits as a logistics hub while supporting landlocked countries to transit their high-value cargo.
The Solow Growth Model asserts that long-run economic growth is achieved through the accumulation of capital (investments), labour, technology (innovation) and output (manufacturing) (Solow-Swan, 1956). Infrastructure investments create a positive shift in the GDP and may facilitate an increase in exports; however, to implement such money-intensive projects, it requires the economic and political will to shape policy instruments to receive fiscal and institutional support.
I define “economic will” as “our collective ability to transform our finite resources into infinite benefits”.
What are the current challenges that Namibia is facing, especially in the north?
- 1. Underused Rail Infrastructure:
The NSA indicates that the Walvis Bay port (53%) is the main source of imports, followed by air (21%) and road (26%). Namibia’s railways are underused while the roads are highly congested.
After its completion in 2010, the rail connection to Oshikango is not very active due to a limitation on cargo. Oshikango shares a border with Angola, and, therefore, the low rail activity indicates that Namibia is not fully capitalising on its access into the Angolan market.
The railway line towards Ondangwa is primarily used for the transporting of building stones, cement, and other building materials. Oshikango is 739km from Windhoek, which indicates that Kuito is closer to Oshikango than Windhoek.
- 2. Industrial Challenges and Unemployment
Namibia’s top imports include petroleum products, mineral ores, motor vehicles, machinery, plastics, pharmaceuticals, inorganic chemicals, food items, iron and steel, sugar, clothing, furniture, etc. Top exports include uranium, gold, fish, petroleum, chemicals, copper, diamonds, fertilisers, and other commodities. The industrial reforms in the northern regions can remedy Namibia’s commodity reliance and raw mineral exports.
Positive outcomes by connecting Namibia to the Lobito corridor.
- 1. Rail Transport
Trading companies will benefit from an additional trade route. Currently, most companies rely on the route to DRC via Katima to Zambia. This route is often very congested, especially when crossing the Kasumbalesa chokepoint, which transits about 500 cargo trucks per day into the DRC.
If the Lobito corridor is operational, cargo from Namibia to the DRC can be transported by rail directly to the DRC (via Angola). Rail transport is less exposed to border or customs delays in comparison to trucks that can be delayed for days (hours).
a) Lower tariffs on imports (SADC FTA)
Goods that will be traded among the member states will attract lower tariffs. Since 2025, Angola and the DRC have acceded to the Southern African Development Community (SADC) free trade agreement (FTA), and, therefore, some products will be traded at a duty-free rate or at low and affordable tariff rates compared to products imported from outside the SADC REC.
b) Mineral Beneficiation and Value Addition (Industrial Growth and Job Creation)
The African copper belt, stretching from Zambia to the DRC, is a crucial global source of copper.
The DRC dominates the global cobalt market, supplying about two-thirds of the world’s demand; in addition, they have silver, uranium, gold, and rare earth metals such as coltan (African Union, 2026). Cobalt is a by-product of large copper mines, and some mines in the DRC smelt more than 300 000 tonnes of blister copper per year.
The DRC is also capable of supplying most of the world’s lithium needs; however, it is halted by legal disputes.
c) Alternative Port Options and Regional Competitiveness
To reduce the reliance on Walvis Bay and the distance, Namibia can unlock more ports near its northern coastline (i.e., Cape Fria).
This way, the Walvis Bay port will have more room for the emerging oil and gas sector.
The long-term goal of the Lobito corridor is to link to the Tanzania-Zambia Railway Authority, which is an 1 860km cross-border rail line connecting Dar es Salaam, Tanzania and Zambia (tarazite.com).
In the south and east, Namibia has the potential for increasing rail capacity with South Africa (SA) and Botswana. SA and Botswana companies can consider shorter alternative routes for their trade with the DRC and Angola.
This can be facilitated via the Lobito corridor; thus, connecting via Oshikango is a logistical benefit for Botswana and SA by seamlessly connecting the far north with the deeper south.
d) Connection to the Lobito Oil Refinery in Angola
The Lobito refinery produces petroleum, diesel, and gas products. Currently, Zambia has indicated its interest in acquiring 26% ownership in the plant, with Botswana interested in a 30% stake.
Once it is fully operational in 2027, the US$6- billion project targets producing 200 000 barrels per day or 73 million barrels annually. The refinery will require reliable rail infrastructure to reach Namibia, Botswana, and SA via inland rail routes.
Analysis of imports and exports for DRC, Namibia and Zambia (2025):
- DRC’s main imports are fuel (US$2.4 billion), sulphur (US$973 million), vehicles (US$419 million, US$152 million), machinery (US$328 million), fish (US$150 million). DRC’s exports include refined copper (US$28 billion), gold (US$3 billion), copper ore (US$2.8 billion), oil (US$1.4 billion), cobalt (US$1 billion). Other exports include tin, zinc, manganese, aluminium, lead, wood, diamonds, and rare minerals such as niobium, tantalum, vanadium or zirconium ores.
- Namibia’s fish exports to DRC are valued at US$17 million, followed by salt for US$7 million. Namibia imports zinc worth US$190 million from the DRC, followed by copper valued at US$27 million. Namibia also imported cobalt valued for US$4.5 million.
- Angola’s exports include petroleum (US$30 billion), gas (US$3.2 billion), diamonds (US$630 million), refined fuel (US$192 million), other exports include granite, seafood products, hydrogen, iron, alloys, steel rods, aluminum, fruits such as bananas. Angola’s main imports include crude oil (US$1 billion), other imports are machines, vessels, wheat, beef, refined copper, pipes, aircrafts, rice, electronics, soya bean, sugar, vehicles, clothes, footwear, wine, maize, etc.
- Namibia imported zinc ore from Zambia estimated at US$138 million annually. In return, Namibia exports fish valued at US$219 million (trademap.org)
– Rodney Hoaeb is a trade researcher and the acting chief executive of the Namibia Trade Forum.
