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

The United States and Zambia signed a nonbinding memorandum of understanding (MOU) on March 30, 2023, to promote U.S. private-sector participation in strategic commercial projects in Zambia. The agreement establishes a framework for identifying and supporting potential projects across agriculture, energy, mining, manufacturing, healthcare, digital services, tourism, education, and transportation. Its stated purpose is to encourage project development and commercial engagement—not to announce a specific acquisition or make a federal award. The MOU is intended to remain active for five years, through March 30, 2028.

For U.S. contractors and investors, the MOU is best understood as a market-entry and coordination signal. It points to areas where commercial opportunities may emerge and encourages transparent, sustainable procurement practices. It is not a solicitation, request for proposals, or promise that the U.S. or Zambian government will purchase services from participating firms. Companies should therefore treat any prospective project as an opportunity to assess and pursue, while independently validating its status, procurement route, financing, and commercial terms.

The agency landscape associated with the initiative includes the U.S. Department of Commerce, the U.S. Trade and Development Agency (USTDA), the U.S. Agency for International Development (USAID), and the U.S. International Development Finance Corporation (DFC). These organizations may offer different forms of relevant engagement or support, but their inclusion does not establish that an agency has committed funding to a particular project. Firms should determine which agency, if any, is relevant to a project’s development, financing, or commercial context, and should distinguish agency support channels from a direct contract award.

The MOU also does not replace negotiations with the Zambian government. Where a project requires a government-facing commercial agreement, companies must negotiate its terms directly with the appropriate Zambian counterpart. The agreement encourages transparent and sustainable procurement, but the supplied information does not identify a particular procurement schedule, budget, set-aside, competition, or award mechanism. Accordingly, companies should conduct project-level due diligence and monitor separate agency announcements and Zambian procurement information before committing bid resources.

• Agreement date and duration: The United States and Zambia signed the MOU on March 30, 2023; its activities are intended to continue through March 30, 2028.
• Status: The MOU is nonbinding and does not create a funding obligation, award guarantee, or procurement commitment.
• Sectors identified: Agriculture, energy, mining, manufacturing, healthcare, digital services, tourism, education, and transportation.
• Procurement signal: The framework encourages transparent, sustainable procurement, but is not itself a solicitation or source of guaranteed work.
• Potential U.S. agency landscape: U.S. Department of Commerce, USTDA, USAID, and DFC are identified as relevant agency organizations or channels.
• Commercial path: Companies must negotiate applicable commercial terms directly with the Zambian government; the MOU does not set those terms.
• Separate funding context: A reported $350 million Millennium Challenge Corporation infrastructure compact, along with USAID and USTDA activities, is separate from the MOU and should not be represented as funding committed by it.
• Action for industry: Use the MOU to inform market research, then verify project-specific sponsors, procurement procedures, financing, and timelines before pursuing an opportunity.