The US has allocated $458 million to help Zambian farmers access regional and global markets. This funding, provided through the United States Millennium Challenge Corporation (MCC), complements the US government's investments in Lobito, a significant logistical corridor that stretches across Angola, Zambia, and Tanzania, connecting the Atlantic and Indian Oceans.
Washington has committed $4 million to the Lobito project, reflecting an apparent competition for the region’s vital minerals with China, which has pledged $1 billion for the rehabilitation of the Tazara, a transborder railway corridor linking Dar es Salaam to Kapiri Mposhi in central Zambia, Zawya reports.
As a result, Zambia has effectively joined the increasing number of African nations receiving US grants through the MCC.
In addition, in East Africa, both Kenya and Tanzania are beneficiaries of the MCC. Kenya signed its agreement with the MCC in 2023, while Tanzania had its agreement reinstated by the US in December 2022 after being suspended during John Magufuli's presidency.
Earlier this month, US Secretary of State Antony J. Blinken, said the Zambia project was set to bring “sustainable and inclusive economic growth for the Zambian people.”
He added: “This MCC compact, based on a $458 million debt-free grant from the US and a $33 million investment by Zambia, will develop infrastructure to assist Zambia’s farmers and rural communities in accessing regional and global markets, support policy reforms to catalyse agricultural sector growth, and complement the US government’s investments in the Lobito Corridor,” Blinken said.
The agreement was signed in Lusaka by MCC CEO Alice Albright and Zambia’s Minister of Finance Situmbeko Musokotwane and witnessed by President Hakainde Hichilema.
“MCC recognises Zambia’s potential to not only become food secure, but also a leading supplier of agricultural goods to the region and the world,” Albright said. “This compact makes it easier for Zambia’s farmers and agriculture processors to sell their products and grow their businesses, an output critical to Zambia’s economic growth.”
President Hichilema stated: “The signing of the second Millennium Challenge compact today signifies yet another landmark in our bilateral cooperation and friendly relations with the people and government of the United States of America.”
The Zambia Farm-to-Market Compact includes a mix of investments in rural road infrastructure and maintenance, as well as access to financing for irrigation, electricity, and storage facilities. It aims to enhance logistics, processing equipment, and infrastructure for agriculture, along with initiatives for agricultural policy reform. This makes it particularly significant and closely connected to the Lobito Corridor.