Zambia and the United States Government have signed an amendment to the Millennium Challenge Corporation (MCC) Compact that will align nearly US$491 million in programme funding with the country’s agricultural, mining and infrastructure development priorities along the Lobito Corridor.
The revised Compact includes a contribution of US$458 million from the United States Government and US$33 million from Zambia.
Secretary to the Treasury Felix Nkulukusa said the programme will support Zambia’s agricultural and critical minerals sectors while unlocking economic opportunities through infrastructure investments and governance reforms.
“The programme will unlock economic opportunities and advance sustainable growth through strategic infrastructure investments and governance reforms,” Nkulukusa said in a statement.
According to Nkulukusa, priority road segments identified under the Roads and Access Project have now been aligned with the Lobito Corridor in the North-Western and Copperbelt provinces.
The Lobito Corridor is emerging as one of Africa’s most important trade and logistics routes, connecting Zambia and the Democratic Republic of Congo to the Port of Lobito in Angola and providing an alternative export route for minerals and other commodities.
Under the revised programme, investments will extend beyond road infrastructure to include access to finance for electricity, irrigation, logistics, processing equipment and supporting infrastructure for small and medium-sized enterprises.
The programme will also support project developers across agricultural value chains and introduce reforms aimed at increasing private investment in grain production and trade.
In the mining sector, reforms are expected to strengthen governance and encourage increased investment in mineral exploration and development.
The announcement comes as Zambia continues to position itself as a key participant in the development of the Lobito Corridor, which has attracted growing international interest as governments and development partners seek to improve regional trade connectivity and strengthen critical minerals supply chains.
For the transport and logistics sector, the alignment of infrastructure investments with the corridor is expected to improve connectivity between production areas, logistics hubs and export markets while supporting broader economic activity in Zambia’s mining and agricultural regions.
The revised MCC Compact is expected to play a key role in supporting Zambia’s long-term trade, infrastructure and economic development objectives.