The United States has allocated $458 million to help Zambian farmers access both regional and global markets. The funds, provided through the Millennium Challenge Corporation (MCC), complement US investments in the Lobito Corridor, a key logistical route connecting Angola, Zambia, and Tanzania, and linking the Atlantic and Indian Oceans.
In addition to the $4 million Washington has pledged for the Lobito project, China has committed $1 billion for the rehabilitation of the Tazara railway, a crucial link between Dar es Salaam, Tanzania, and Kapiri Mposhi, Zambia. This underscores the competition between the US and China for influence in the region’s critical mineral sectors.
Zambia joins other African countries, including Kenya and Tanzania, as recipients of US grants under the MCC. Kenya signed an agreement in 2023, and Tanzania had its compact reinstated in 2022 after being suspended during the presidency of John Magufuli.
On October 19, US Secretary of State Antony Blinken announced the $491 million Zambian project, which includes a $458 million grant from the US and a $33 million investment from Zambia. The funds will develop infrastructure to help Zambian farmers and rural communities access broader markets, support agricultural policy reforms, and complement US investments in the Lobito Corridor.
The agreement was signed in Lusaka by MCC CEO Alice Albright and Zambia’s Minister of Finance, Situmbeko Musokotwane, with President Hakainde Hichilema in attendance. Albright emphasized Zambia’s potential to not only secure its own food supply but also become a major supplier of agricultural goods to global markets.
The Zambia Farm-to-Market Compact will focus on improving rural infrastructure, such as roads, irrigation, electricity, and storage facilities, while also supporting agricultural policy reforms. This compact aims to strengthen Zambia’s agricultural value chain and enhance its economic growth by integrating with the Lobito Corridor.
