Zambia, US Redirect Part of $491 Million Agriculture Grant to Boost Lobito Corridor and Critical Minerals Infrastructure
Zambia has reached an agreement with the United States’ Millennium Challenge Corporation (MCC) to expand the scope of a $491 million grant programme, allowing part of the funding to support infrastructure linked to the country’s critical minerals sector and the strategic Lobito Corridor.
The grant, signed in 2024 under the MCC’s “farm-to-market” initiative, was initially designed to strengthen agricultural development and improve rural transport networks in Africa’s second-largest copper producer.
According to a statement issued by Zambia’s Ministry of Finance and National Planning on Thursday, the revised framework will support both agricultural growth and critical minerals development.
“The realignment will support both Zambia’s agricultural and critical minerals economy in the Lobito Corridor, a key economic corridor for Zambia,” the ministry said.
Strategic importance of the Lobito Corridor
The Lobito Corridor has emerged as one of Africa’s most significant trade and logistics projects.
The corridor is centered on a railway network linking the mineral-rich regions of the Democratic Republic of Congo and Zambia to Angola’s Atlantic port of Lobito.
The route is considered strategically important for exporting copper, cobalt, and other critical minerals to international markets, particularly as Western countries seek to diversify supply chains and reduce dependence on China for minerals essential to the global energy transition.
Zambia plans to connect its Copperbelt and North-Western Province mining regions to the corridor, enhancing export capacity and regional trade integration.
The African Finance Corporation (AFC), the lead developer of the Lobito Corridor railway project, has indicated that it is targeting financial close by the fourth quarter of 2027.
Funding to support key transport infrastructure
Under the revised agreement, a portion of the MCC funding will be redirected toward infrastructure projects that support both agricultural logistics and mining-related economic activity along the corridor.
The Ministry of Finance said priority road rehabilitation projects have already been aligned with the Lobito Corridor development strategy.
“Priority road segments identified for rehabilitation have been aligned with the Lobito Corridor in the North-Western and Copperbelt provinces one of Africa’s most significant emerging trade and logistics corridors,” the ministry stated.
The move reflects Zambia’s broader strategy of leveraging infrastructure investments to support economic diversification, strengthen agricultural value chains, and capitalize on growing global demand for critical minerals.
By integrating agricultural and mining infrastructure planning, the government aims to maximize the economic impact of the MCC grant while positioning Zambia as a key player in regional and global supply chains.
