U.S.–Zambia MOU Opens a Five-Year Framework for Strategic Commercial Projects

The governments of the United States and Zambia established a five-year framework to encourage U.S. private-sector participation in strategic commercial projects in Zambia. The memorandum of understanding (MOU) became operative when signed on March 30, 2023. Its scope spans agriculture, energy, mining, manufacturing, healthcare, digital services, tourism, education, and transportation, making it relevant to companies across infrastructure, technology, services, and industrial supply chains. The document emphasizes transparent and sustainable procurement, but its broad scope should not be mistaken for a pipeline of funded solicitations.

For contractors and investors, the central distinction is between a framework for cooperation and an actionable procurement opportunity. The MOU is nonbinding: it does not commit either government to provide funding, guarantee awards, or establish procurement obligations. It identifies possible U.S. government support and financing channels that companies may investigate, while commercial terms are negotiated directly between businesses and the Zambian government or other relevant parties where applicable. Firms should therefore validate project sponsors, funding status, procurement authority, and competition requirements before treating a project reference as a bid opportunity.

The agencies identified in connection with the framework include the U.S. Department of Commerce (DOC), U.S. Trade and Development Agency (USTDA), U.S. Agency for International Development (USAID), and U.S. International Development Finance Corporation (DFC). Their potential roles and instruments differ, so companies should match a project concept to the appropriate channel rather than assume that inclusion in the MOU results in financing. The extracted opportunity information includes USTDA project-preparation support and a $350 million Millennium Challenge Corporation (MCC) compact focused on water, sanitation, and drainage infrastructure. Those items are distinct from any award commitment under the MOU, and project-specific eligibility and terms must be confirmed with the relevant parties.

The five-year activity period began on March 30, 2023, giving market researchers a defined timeframe for monitoring follow-on activity and government engagement. The framework may help companies identify potential Zambian commercial projects, understand stated procurement priorities, and assess whether their offerings fit sector needs. Practical next steps include tracking agency announcements, checking whether a project has an identified sponsor and financing plan, and determining how procurement will be conducted. Because the MOU does not itself create a solicitation or guarantee a contract, companies should budget for early market development and due diligence separately from bid costs, and avoid treating prospective support as committed revenue.

• The MOU became operative upon signature on March 30, 2023, and sets out an intended five-year initiative.
• Its nine focus areas are agriculture, energy, mining, manufacturing, healthcare, digital services, tourism, education, and transportation.
• The stated objective is to encourage U.S. private-sector participation while promoting transparent, sustainable procurement.
• The agreement is nonbinding and does not commit funds, guarantee awards, or create procurement obligations.
• DOC, USTDA, USAID, and DFC are identified as potential U.S. agency channels; participation and financing are not guaranteed.
• USTDA project-preparation support is among the extracted opportunities, but should be evaluated on its own terms and eligibility requirements.
• The separate $350 million MCC compact concerns water, sanitation, and drainage infrastructure; it is not an award commitment under this MOU.
• Companies should verify project sponsorship, funding, procurement authority, and competition terms before allocating bid resources.
• Commercial terms are negotiated directly by businesses and the Zambian government or relevant parties where applicable; the framework itself is not a solicitation.