LUSAKA, June 19 – Zambia has agreed with the 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 growing critical minerals sector.
The grant programme, signed in 2024 under the Farm-to-Market Compact, was originally designed to strengthen agricultural development by improving transport infrastructure, market access and rural connectivity.
Under the revised agreement, portions of the funding will now also support infrastructure projects associated with the Lobito Corridor, one of Africa’s most strategically important trade routes for exporting critical minerals.
According to Zambia’s Ministry of Finance, the realignment is intended to strengthen both the country’s agricultural economy and its expanding critical minerals industry.
“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 in a statement.
The Lobito Corridor connects the mineral-rich regions of Democratic Republic of the Congo and Zambia to Angola’s Atlantic port of Port of Lobito through an integrated rail and logistics network.
The corridor has become increasingly important to Western governments seeking alternative supply chains for copper, cobalt and other minerals essential for clean energy technologies, reducing dependence on China for critical mineral processing and exports.
Zambia is working to connect its Copperbelt region to the corridor as part of a broader strategy to improve export logistics, attract mining investment and strengthen regional trade.
Project developer Africa Finance Corporation has previously indicated that financial close for the Zambia rail connection is targeted for the fourth quarter of 2027.
Under the revised funding framework, priority road rehabilitation projects in Zambia’s North-Western and Copperbelt provinces have been aligned with the Lobito Corridor to improve transport efficiency and facilitate movement of agricultural products and mineral exports.
The finance ministry said these road upgrades form part of one of Africa’s fastest-emerging trade and logistics corridors.
The expanded agreement reflects Zambia’s broader effort to integrate infrastructure development with industrialisation and mineral value chains while leveraging international partnerships to support long-term economic growth.
