Zambia, US widen $491 million farm deal to support critical minerals

Zambia is widening the scope of a $491 million U.S.-backed agricultural programme to help build infrastructure for its growing critical minerals industry, reinforcing the country’s efforts to strengthen its role in global supply chains. 

The move comes as demand for copper, cobalt and other minerals used in electric vehicles and clean energy technologies continues to rise. Governments and companies are increasingly looking for secure sources of supply outside traditional markets. 

Under an agreement with the U.S. Millennium Challenge Corporation (MCC), parts of the grant programme signed in 2024 will be redirected to projects linked to the Lobito Corridor, according to Reuters. 

The initiative was originally created to improve agricultural productivity and give farmers better access to markets. Zambia said the revised plan will allow the programme to support both farming communities and the mining sector. 

The changes reflect the government’s broader push to use infrastructure investment to drive economic growth across key industries.

Lobito Corridor gains importance 

The Lobito Corridor connects the mineral-rich regions of Zambia and the Democratic Republic of Congo to Angola’s Atlantic port of Lobito. The route has become one of Africa’s most important transport projects, attracting more than $6 billion in global commitments. 

Its importance has grown as Western governments and businesses seek alternative supply chains for copper, cobalt and other critical minerals needed for batteries, renewable energy systems and electric vehicles.

Focus on the Copperbelt 

Zambia’s Ministry of Finance said the revised programme will help improve road infrastructure in the Copperbelt and North-Western provinces, two areas that play a major role in the country’s mining industry. 

Better roads are expected to help farmers move produce more easily while also supporting the transportation of copper and other minerals to export markets.

Expanding transport links 

Zambia is also working to connect its Copperbelt region directly to the Lobito Corridor through a railway expansion being developed by the African Finance Corporation. 

The AFC has previously said it is targeting financial close for the railway project in the fourth quarter of 2027. As competition for critical minerals increases, Zambia is seeking to strengthen its position as a regional trade and logistics hub while supporting growth in both agriculture and mining.