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Zambia and the US increase use of $491 Million grant programme for critical metals infrastructure

Zambia announced on Thursday that it had agreed with U.S. Agency Millennium Challenge Corporation to increase the use of $491'million agriculture grant programme' to support key critical minerals infrastructure.

Signed in 2024, the "farm to market" grant was initially intended to boost agricultural development in Africa’s No. 2 copper producing country.

The Zambian finance ministry released a statement that said, "The realignment of the railway will support Zambia's agriculture and critical minerals economy along the Lobito Corridor -- a major economic corridor for Zambia."

The 'Lobito Corridor' is a rail connection between Angola's Atlantic port of Lobito and the top copper and cobalt producer on the continent, Democratic Republic?Congo.

This route is considered strategic in order to export critical minerals to Western countries, which are looking to counter China's dominance of metals essential for the energy transformation.

Zambia wants to link its copperbelt with the corridor. The African Finance Corporation is the lead project developer. It has stated that it aims to close the financial deal in the 'fourth quarter' of 2027.

The ministry stated that some of the grant funds will be used to build infrastructure related to the project.

The report added that "Priority 'road segments for rehabilitation were aligned to the Lobito - Corridor, one of 'Africa's most important emerging trade and logistic corridors." Reporting by Chris Mfula. Nelson Banya is the writer. Mark Potter (editing)

(source: Reuters)