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

The United States and Zambia signed a nonbinding memorandum of understanding on March 30, 2023, to encourage U.S. private-sector participation in strategic commercial projects in Zambia. The agreement covers a broad set of sectors: agriculture, energy, mining, manufacturing, healthcare, digital services, tourism, education, and transportation. Its stated role is to provide a framework for developing and implementing projects and for coordinating potential U.S. government assistance and financing channels. The MOU remains in effect for five years, through March 2028.

For government contractors and commercial firms, the MOU is a market-development signal rather than a procurement notice. It does not identify a solicitation, select a vendor, establish a contract vehicle, or commit either government to fund a particular project. It also creates no guarantee of financing or award. Companies should therefore treat the agreement as a basis for exploring opportunities and building relationships—not as evidence that a project has been approved, funded, or set aside for U.S. suppliers.

The document identifies potential roles for U.S. agencies, including 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 assistance or financing channels, subject to their own authorities, programs, reviews, and project-specific decisions. The MOU does not guarantee that any agency will support a proposed activity. Firms should assess each agency’s applicable eligibility requirements and pursue relevant engagement independently rather than assuming that the agreement itself creates a funding pathway.

The MOU emphasizes transparent and sustainable procurement, while leaving commercial terms to be negotiated directly with the Zambian government, as applicable. The Ministry of Commerce, Trade and Industry of the Republic of Zambia and the U.S. Department of Commerce are among the government entities named in the source material. For capture and business-development teams, practical next steps include identifying specific projects and counterpart agencies, validating procurement processes and local requirements, and separating potential U.S. agency support from the underlying commercial negotiation. The agreement’s breadth creates possible avenues for firms in infrastructure, energy, technology, health, and other sectors, but project-level diligence remains essential.

• Term: The MOU was signed on March 30, 2023, and supports coordination for five years, through March 2028.
• Sectors: Potential project areas include agriculture, energy, mining, manufacturing, healthcare, digital services, tourism, education, and transportation.
• Status: The MOU is nonbinding and is not a solicitation, contract award, or committed source of financing.
• Funding caveat: The agreement creates no funding obligation, guarantee, or promise that a project will receive U.S. government support.
• Potential U.S. channels: USTDA, USAID, and DFC may provide assistance or potential financing, subject to their own processes and decisions.
• Commercial path: Companies must negotiate project-specific commercial terms directly with the Zambian government as applicable.
• Procurement approach: The agreement emphasizes transparent, sustainable procurement; firms should verify how those principles are implemented for each opportunity.
• Capture action: Treat the MOU as a framework for market exploration, then confirm project maturity, responsible Zambian counterparts, applicable procedures, and any separate agency funding mechanisms.
• Named government entities: The source identifies Zambia’s Ministry of Commerce, Trade and Industry and the U.S. Department of Commerce, alongside the potential U.S. assistance and financing agencies.