USAID Launch Business and Trade Development Projects in Zambia
The Zambian Minister of Finance and the U.S. Ambassador to Zambia have announced the launch of two economic development projects known as the USAID Business Enabling Project and the USAID Trade Boost.
The $24 million dollar (K233 million) Business Enabling Project is being funded by the U.S. government. According to a statement by USAID, “the project will support the development of an enabling environment that incentivises investments in trade, agriculture, energy, eco-tourism, and sustainable natural resource management.” USAID wish to make small improvements to business owners’ perceptions of the regulatory and investment environment in the country. The programme also hopes to strengthen policy-making alongside the Zambian government through linkages with select civil society organisations in order to promote economically viable and gender-balanced rural enterprises.
This project will work alongside existing government projects to strengthen smallholder farmers. In September, the government confirmed the reform of their agricultural support into the new Comprehensive Agricultural Support Programme. From 2023 the Zambian government is aiming to increase the number of extension support officers, extend the reach of irrigation channels, and facilitate greater access to finance. The Business Enabling Project will support these efforts.
The USAID Trade Boost is set to invest $30 million dollars (K500 million) through the Prosper Africa ‘Africa Trade and Investment Programme’. The aim of the programme is to boost trade and investment through climate-friendly economic approaches. Prosper Africa is a U.S. Government initiative to bring U.S. companies into African markets – the Boost will prioritise co-investment with the private sector to produce inclusive growth. Through the Public-Private Dialogue Forum, the Zambian government hope to encourage structured, participatory, and inclusive public-private sector cooperation in order to stimulate the Zambian economy with the goal of reaching middle-income status by 2030.
U.S. Ambassador Michael Gonzales told attendees at the launch event that by making it easier to do business in Zambia “these projects will help Zambian businesses to produce more, create jobs, and provide a broader variety of healthy food options in markets.”
Zambia is actively seeking cooperative partnerships with international organisations and civil society groups. Indeed, this week a delegation from Zambia met with representatives in Berlin to discuss the future of development cooperation between Zambia and Germany. The German delegation spoke positively about President Hichilema’s attempts to improve accountability and transparency in the country, two vital aspects of a strong investor climate.
It is hoped the U.S.-led projects will boost agricultural production and exports within Zambia in order to both alleviate the food crises in neighbouring countries, brought about by Russia’s invasion of Ukraine, and stimulate Zambia’s economy as President Hichilema and his administration continue to strive to meet the goals of the Eighth National Development Plan. USAID is hoping for the projects, in conjunction with existing programmes, to create an economic environment in Zambia capable of addressing problems and generating growth across agriculture, clean energy, and eco-tourism whilst creating equitable opportunities for women and youth through increased access to capital.