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Senators press State Department on DFC, Lobito Corridor and paused MCC compacts
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Summary
At a Senate hearing, lawmakers questioned Ambassador Fittrell about the Development Finance Corporation's role, the Lobito Corridor project, and at least seven paused Millennium Challenge Corporation compacts; senators pressed for faster disbursement and legal fixes for DFC.
Senators at the Foreign Relations Committee subcommittee hearing on China in Africa pressed Ambassador Fittrell and asked detailed questions about U.S. development finance instruments and specific projects, including the Lobito Corridor.
Ambassador Fittrell described the Development Finance Corporation (DFC) as a "tremendous catalyst" for projects such as the Lobito Corridor, which connects Angola's Atlantic coast toward the eastern Democratic Republic of the Congo and into the region. He said he would "copy the model" and replicate it elsewhere and emphasized the role of blended finance to make large corridor projects work.
Senator Cory Booker told the witness he was concerned that about $550,000,000 in DFC funds for Lobito "haven't been distributed yet" and that at least seven Millennium Challenge Corporation compacts in Africa were paused, raising costs and uncertainty for host governments and U.S. partners. Fittrell said he would seek updates on demining partnerships in Angola and follow up on disbursement timing; he also said he planned a commercial advocacy trip to Luanda to press for disbursement and to meet ministers of mines and other officials.
Committee members discussed the historical legislative work that converted OPIC into DFC under the BUILD Act and encouraged legal fixes to allow DFC greater equity investment and faster blended finance operations. One senator urged expanding DFC’s authorities and reducing the risk-averse posture of other U.S. finance instruments to better compete with China's rapid, state-directed financing.
What was not resolved: specific timelines or commitments for the $550 million Booker cited, the status of the seven paused MCC compacts, and whether MCC disbursements will be reinstated; the witness said he would follow up to provide answers to senators' outstanding questions.
