US President Joe Biden has embarked on a historic three-day visit to Angola, focusing on strengthening American ties with the resource-rich nation and countering China’s growing influence in the region. This trip marks the first visit by a sitting US president to the Sub-Saharan African country.
Enhancing Energy Partnerships and Market Dynamics
Biden’s visit is expected to foster closer economic cooperation with Angola, a leading oil and gas producer in Africa. The country boasts approximately 9 billion barrels of proven crude oil reserves and 11 trillion cubic feet of natural gas reserves, making it a significant player in global energy markets. While Biden’s term is nearing its end, the incoming administration under President-elect Donald Trump is expected to continue prioritizing energy development, potentially increasing drilling activities by American oil producers.
The trip comes at a time of heightened volatility in oil markets, with crude prices recently slumping to near three-year lows amid oversupply concerns and easing geopolitical tensions in the Middle East. Biden’s focus on Angola’s oil infrastructure could signal efforts to stabilize global energy markets, although no specific projects have been announced.
Meanwhile, Angola’s oil sector is currently dominated by international players like TotalEnergies, Chevron, Exxon Mobil, and BP. The US aims to solidify its influence in this critical industry to reduce reliance on other global players.
Diversifying Supply Chains with Critical Minerals
Another key focus of Biden’s trip is the Lobito Corridor, a US-backed railway project linking Angola with the Democratic Republic of Congo (DRC) and Zambia. This 800-mile railway is designed to transport critical minerals like copper and cobalt, essential for battery production and electric vehicles, to Western markets.
This initiative is part of a broader US strategy to counter China’s Belt and Road Initiative, which has significantly increased Chinese investments in African infrastructure. The Biden administration views the project as vital to securing alternative supply chains for critical materials and reducing dependency on China and Russia.
Biden is also expected to address other issues, including public health, agriculture, and cultural preservation, during his visit. His administration had previously pledged $55 billion in African investments, a direct challenge to China’s $50 billion commitment to the continent.
As the visit unfolds, global markets and geopolitical analysts will closely monitor its implications for energy markets and international partnerships.
