(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).