USAID administrator Samantha Power on Wednesday launched a US$30 million, called TradeBoost Zambia, which will advance the US government’s Prosper Africa and Feed the Future initiatives.
TradeBoost is among the first projects to be launched as part of USAID’s new continent-wide Africa Trade and Investment program, the Agency’s flagship effort in support of Prosper Africa.
TradeBoost will amplify market intelligence, increase investment in Zambian businesses, and direct targeted trade facilitation support to Zambian businesses to reach regional and international markets. TradeBoost prioritizes locally-led development with all sub-contracts and grants going to local partners. The program will focus on businesses led by women and young people who invest in climate smart production.
As part of this new trade and investment program, Administrator Power announced two private sector partnerships that will enhance Zambia’s ability to grow food for people across Africa.
Power announced deals with two Zambian companies – Zdenakie and NewGrowCo – to export 17 500 metric tonnes of maize and soybeans from Zambia valued at US$8.5 million.
The two companies expect to move at least 1 300 metric tonnes of grain to East Africa.
To accelerate the exports, USAID is structuring a revolving credit facility that will give Zambia grain traders the finance they need to rapidly buy, aggregate, and export grain. The facility is projected to support the export of an additional 30 000 metric tonnes of needed grain across Africa going forward.
Second, through a US$200,000 grant, USAID unlocked a US$4.5 million investment in Zambia’s macadamia sector.
Macadamia nuts are a high-value export, bringing in additional investment and further strengthening Zambia’s role as an agricultural exporter.
South African investment firm Foxfin Financial Services will purchase a 165 hectare farm from Golden Dawn Zambia, develop an irrigation system, install solar energy, and plant 45,000 macadamia nut trees. This deal will support sustainable, climate smart agriculture and create nearly 100 jobs, the majority of which will be held by women.
Through the Prosper Africa initiative, USAID is leveraging private sector partnerships to ensure all people have the opportunity to create a better life for their children, their families, and their communities. USAID is committed to strengthening trade and investment ties between African nations and the United States – creating jobs, advancing solutions to pressing global challenges, and spurring private investment at a scale that could never be matched by foreign aid alone.
With more than $1 billion per year in funding, Feed the Future is leveraging existing technical expertise, programs, and partners in more than 35 countries to mitigate the impacts of this latest global shock. In these countries, the US government takes a coordinated approach to its investments and in turn, paves the way for further resources and investment from other actors, such as the private sector, donors, and local governments.
