Against the backdrop of COVID-19 recovery, climate-related shocks and Russia’s war on Ukraine that has heightened food insecurity, Zambia’s economy is projected to grow by two percent in 2022 boosted by the recovery of important sectors including mining, agriculture, and tourism. Which is why USAID Administrator Samantha Power’s launch of TradeBoost Zambia, a groundbreaking new $30 million trade and investment activity, in Lusaka has come at an opportune time. TradeBoost Zambia advances the U.S. Government’s Prosper Africa and Feed the Future initiatives and is among the first to be launched as part of USAID’s new continent-wide Africa Trade and Investment program, the Agency’s flagship effort in support of Prosper Africa.
TradeBoost will amplify market intelligence, increase private investment, and provide targeted trade facilitation support to small and medium-sized businesses in Zambia. Priorities are locally led development and a focus on businesses led by women and young people who invest in climate smart production.
As part of TradeBoost’s launch, Administrator Power has announced two private sector partnerships that will enhance Zambia’s ability to grow food for people across Africa amidst the global food crisis.
In the first partnership, two Zambian companies – Zdenakie and NewGrowCo – are set to export 17,500 metric tons of maize and soybeans from Zambia valued at $8.5 million. These companies will move at least 1,300 metric tons of grain to East Africa in a matter of days. To accelerate these exports, USAID is structuring a revolving credit facility that will give Zambian grain traders the finance they need to rapidly buy, aggregate, and export grain. The facility is projected to support the export of 30,000 metric tons of needed grain across Africa.
The second partnership will see USAID unlock a $4.5 million investment in Zambia’s macadamia sector through an initial $200,000 grant. Macadamia nuts are a high-value export, bringing in additional investment and further strengthening Zambia’s role as an agricultural exporter. South African investment firm Foxfin Financial Services will purchase a 165 hectare farm from Golden Dawn Farms in Zambia, develop an irrigation system, install solar energy, and plant 45,000 macadamia nut trees. This deal will support sustainable, climate smart agriculture and create nearly 100 jobs, the majority of which will be held by women.
Through the Prosper Africa initiative, USAID is leveraging such private sector partnerships to ensure all people have the opportunity to create a better life for their children, their families, and their communities. USAID is committed to strengthening trade and investment ties between African nations and the United States – creating jobs, advancing solutions to pressing global challenges, and spurring private investment at a scale that could never be matched by foreign aid alone.