Global commodities trader Trafigura has withdrawn from a proposed 2,000-megawatt (MW) cross-border electricity transmission project intended to deliver surplus hydropower from Angola to mining hubs in the Democratic Republic of Congo (DRC) and Zambia.
The move casts fresh uncertainty over one of Central and Southern Africa’s most ambitious regional energy initiatives, underscoring the financial and execution challenges facing large-scale cross-border infrastructure projects—even as demand for reliable electricity continues to grow alongside the continent’s expanding critical minerals sector.
The project was <a href="https://absafricatv.com/fifa-to-announce-record-15bn-world-cup-revenue-smashing-expectations/” title=”Fifa to announce record $15bn World Cup revenue, smashing expectations”>announced in July 2024 through a non-binding agreement between Trafigura, engineering firm ProMarks, and the Angolan government. It aimed to alleg operations in the DRC and Zambia, two countries that together account for a substantial share of global production of these strategic minerals
Beyond strengthening energy security, the initiative was intended to deepen regional integration by linking Angola’s surplus hydropower capacity with neighbouring markets where electricity demand is rising rapidly due to mining and industrial expansion.
Angola has become one of Africa’s leading hydropower producers, with major generation assets including the Lauca and Cambambe dams. However, limited transmission infrastructure and inadequate cross-border interconnections have prevented the country from fully utilising its available generating capacity.
Meanwhile, mining regions in the DRC and Zambia continue to experience persistent electricity shortages that disrupt production, delay mine expansions and increase operating costs. Reliable power has become increasingly vital as global demand for copper and cobalt accelerates, driven by electric vehicles, battery storage, renewable energy technologies and broader industrial electrification.
According to Reuters, Angolan government officials and industryon project. The company has neither disclosed the reasons for its decision nor commented publicly on the reports
The withdrawal is particularly notable given Trafigura’s continued involvement in other strategic infrastructure developments, including the Lobito Corridor—a major transport and logistics network linking mining regions in the DRC and Zambia to Angola’s Atlantic port of Lobito.
The corridor has attracted strong backing from African governments, development finance institutions and international partners, which view it as a critical component of efforts to improve regional trade, diversify mineral export routes and strengthen Africa’s role in global critical mineral supply chains.
Despite Trafigura’s exit, Angola has reaffirmed its commitment to exporting surplus electricity to neighbouring countries. Government officials are reportedly engaging alternative investors and strategic partners, although the project’s financing structure and implementation timeline may differ from the original proposal.
Several complementary transmission projects continue to advance across the region, highlighting sustained investor interest in expanding Southern Africa’s electricity network. Dubai-based Averi Finance and Morocco’s Somagec, through their joint venture Meridia Energy, are developing multiple cross-border transmission projects linking Angola with the DRC and the wider Southern African Power Pool (SAPP).
Among the flagship initiatives is the proposed Soyo–Inga–Cabinda transmission line, expected to transmit up to 800 MW, alongside the larger Lauca–Kolwezi corridor, designed to deliver approximately 1,400 MW directly to mining centres in the DRC. Together, the two projects are estimated to require investments of approximately USD 450 million and USD 1.25 billion, respectively, with commercial operations targeted around 2030.
Separately, US-based HYDRO LINK is pursuing a 1,200-kilometre electricity interconnector between Angola and the DRC to improve power reliability in the mineral-rich provinces of Lualaba and Katanga, home to some of the world’s largest copper and cobalt mining operations.
The latest developments highlight one of Africa’s most significant development challenges. Although the continent possesses some of the world’s largest reserves of critical minerals essential to the global energy transition, inadequate infrastructure—particularly electricity transmission and transport networks—continues to constrain industrial growth, investment and downstream value addition.
For Angola, the DRC and Zambia, the objective extends beyond exporting raw minerals. Governments are increasingly prioritising investments in mineral processing, manufacturing and industrialisation to capture greater value from global supply chains rather than remaining primarily exporters of unprocessed commodities.
Cross-border electricity infrastructure is central to that strategy, enabling countries to connect abundant renewable energy reational boundaries. Stronger regional energy connectivity could unlock new investment, expand production capacity and accelerate economic integration across Southern and Central Africa
At the same time, Trafigura’s withdrawal illustrates the complexity of delivering multi-billion-dollar infrastructure projects in emerging markets. Such developments must navigate financing constraints, commercials, technical complexity and long-term political and investment risks before reaching financial close
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As Africa strengthens its position as a key supplier of minerals essential to the global energy transition, the success of regional infrastructure initiatives will depend not only on attracting international capital but also on deeper regional cooperation, stronger institutions and sustained investment in resilient energy and transport networks capable of supporting long-term industrialisation and inclusive economic growth.
