The United States has approved a $458 million grant under the Millennium Challenge Corporation (MCC) to support Zambia’s agricultural sector through the Farm-to-Market Compact.
This initiative complements the U.S. government’s ongoing investments in the Lobito Corridor—a strategic logistics network connecting Zambia with Angola and Tanzania and linking the Atlantic and Indian Oceans.
The purpose of this infrastructure is to boost Zambia’s regional connectivity and access to international markets.
The signing ceremony in Lusaka marked a significant moment in the U.S.-Zambian relations, with the attendance of key figures including Zambia’s President Hakainde Hichilema, U.S. Secretary of State Antony J. Blinken, and MCC CEO Alice Albright.
In his statement, Blinken highlighted that the $491 million project, comprising the U.S. grant and an additional $33 million from Zambia, is designed to foster “sustainable and inclusive economic growth.” He emphasized the compact’s role in enhancing infrastructure, supporting policy reforms, and empowering Zambian farmers to access regional and global markets.
This partnership is particularly impactful as Zambia aims to solidify its position as a regional agricultural leader. According to MCC CEO Albright, the compact helps Zambia’s farmers and agricultural processors to access larger markets, reducing reliance on intermediaries and increasing profits.
This boost is timely, as Zambia is becoming central to U.S.-China competition over critical minerals in Africa. The Lobito Corridor project alone has attracted significant investments, with the U.S. pledging $4 million, compared to China’s $1 billion commitment for the Tazara railway rehabilitation.
In addition to expanding market access, the Zambia Farm-to-Market Compact will improve rural road infrastructure, facilitate asset financing for irrigation and storage facilities, and enhance access to electricity.
The National Association for Smallholder Farmers of Zambia has lauded this initiative, noting that it will empower farmers to secure contracts, ensure a reliable market for their produce, and ultimately reduce post-harvest losses.
