This initiative is largely made feasible by a direct loan of $553 million from the U.S. International Development Finance Corporation (DFC), which was established in 2019 to address the expanding influence of China through various infrastructure developments, including the recent inauguration of the mega-port in Chancay, Peru.
On the following Monday, the DFC celebrated its fifth anniversary, making a commitment to bolster U.S. foreign policy and strategic interests through pivotal projects across the globe, including the one in Angola. Additionally, the agency is seeking re-authorization from Congress to enhance its investment capabilities in more nations, especially where there is a critical need to compete with Chinese endeavors.
Scott Nathan, the CEO of the development agency, emphasized the importance of being reliable partners while offering alternatives rooted in democratic values. “Quite simply, we need to continue showing up,” he expressed during his time in Angola alongside the president.
As Nathan gets ready to step down from his position, the incoming President Donald Trump has not yet appointed a successor for the agency’s leadership.
During its initial five years in operation, the DFC created a robust portfolio worth over $50 billion across 114 countries. This includes various initiatives like solar panel production in India, a power station in Sierra Leone, and advancements in digital infrastructure in South America. The agency has effectively utilized government funds to draw in private investments, committing $12 billion towards new transactions last fiscal year, leveraging approximately $800 million in appropriations, according to Nathan.
These investments are reportedly fostering significant economic transformations while advancing U.S. strategic goals, with the rail project in Angola aiming to streamline the supply chain and reduce costs and time in the transport of essential minerals.
National Security Adviser Jake Sullivan highlighted that the agency was established at a time when the U.S. was “ceding the field” to China in the evolving geopolitical landscape, prompting the need for a vision that reflected this new reality while addressing substantial global challenges.
In 2013, China initiated its extensive Belt and Road Initiative, seeking to expand its markets and influence by investing in infrastructure projects in various less-developed regions. A recent analysis from the U.S. Government Accountability Office showed that China invested $679 billion in international infrastructure from 2013 to 2021, contrasting with the $76 billion invested by the U.S. in the same timeframe. Critics have condemned Chinese-backed projects as potential debt traps; however, China contends that these initiatives yield significant economic improvements for the countries hosting them.
In 2018, a bipartisan effort in Congress led to the creation of the U.S. development agency, with the goal of attracting private investments to low- and middle-income nations through mechanisms such as equity investments, loan guarantees, and political risk insurance.
During the DFC’s milestone celebration on Monday, Secretary of State Antony Blinken commended the agency for redefining U.S. development strategies and stated that its initiatives showcase that countries do not have to rely on projects that are poorly constructed, environmentally harmful, exploitative of workers, promote corruption, or impose unmanageable debt burdens.
“We truly are the partner of choice,” Blinken asserted. Despite the existing challenges, he emphasized the necessity for the agency to expand its efforts and reach even more countries in the future.
