Economy

U.S. pledges over $2 billion to boost Zambia’s private sector growth, anchored on policy of reciprocity

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The United States has unveiled a landmark support package for Zambia, pledging more than US$2 billion in grants over the next five years to drive private-sector-led economic growth.

The package is anchored on the principle of reciprocity.

Speaking at State House when he met Zambian President Hakainde Hichilema on Monday, U.S. Assistant Secretary for Economic, Energy and Business Affairs, Caleb Orr, emphasized that the initiative was designed to shift the focus from traditional aid to trade, investment, and measurable results.

“What we are offering today is a bold, targeted assistance package that will cement systematic reforms in health service delivery for Zambians that will not be dependent on foreign funding. We are offering a restructured package that will unleash the agriculture sector, expand roads linking farms and mines to markets, and spur value chains right here in Zambia,” Orr said.

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The comprehensive package aims to create a level playing field for U.S. businesses, attract private investment, and strengthen Zambia’s economic infrastructure.

It included technical support for policy and fiscal reforms, as well as measures to enhance transparency and efficiency in business regulation.
Orr stressed that the initiative operates on the principle of reciprocity, with U.S. assistance contingent on Zambia making rapid and tangible progress toward economic reforms.

“Together we are offering the opportunity to transform the shared aspirations of our countries into tangible progress,” he said.

The U.S. programme reflects the Trump Administration’s broader strategy to encourage investment-driven growth in Africa, moving away from aid programs that lack accountability or measurable returns.

Zambia, with its abundant natural resources and strategic position in the region, is seen as a key partner in this new approach.

In response, President Hichilema said Zambia was ready to reset relations with the United States and hopes to reach a successful conclusion to support the country’s economic potential.

By linking grants and technical support to reforms that strengthen the private sector, the U.S. hopes to unlock Zambia’s economic potential, create jobs, and establish a sustainable model for development that benefits both nations.

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