When Zambia’s 260 Brands opened its first plant-based milk factory in 2023, it marked a significant step forward in Zambia’s journey to capture more value from its own resources and create local jobs.
Supported by the U.S. Agency for International Development, the factory allows Zambian farmers and processors to transform local crops into high-value products right at home. This is called moving up the value chain.
“Our brand represents the vibrancy of Africa, and the spirit of freedom and innovation,” said Gaurav Vijayvargiya, CEO of 260 Brands, in an interview. “We manufacture, market, and distribute high-quality consumer products … which enable Africa’s people to taste the good life.”
The value chain is the process of turning raw materials into finished products. Instead of selling raw resources like crops or minerals, countries can process these materials into goods that have higher value, like packaged foods or manufactured items.
This approach brings several advantages. Not only does it allow the country to keep more profit from what it produces, but it also creates jobs, strengthens local industries, and builds a more sustainable economy. For Zambia, keeping more of the value in the country means empowering businesses and communities to grow in ways that were not possible when raw materials were only exported.
This shift means that more money and jobs stay in Zambia, benefiting local communities. 260 Brands is now expanding and building a new processing facility financed by a $10 million loan from the U.S. International Development Finance Corporation (DFC).
And this is just one example of how U.S. investment supports Zambia’s development. Through programs like USAID’s Feed the Future initiative, the U.S. collaborates with Zambia to build a resilient agricultural sector that can thrive in local and global markets.
Working with the Export Trading Group, the United States is helping Zambians source local inputs, blend them, and export fertilizer as part of a $14.5 million grant through its Enterprise Development and Growth Enhanced (EDGE) project to help small and medium-sized businesses. By locally producing customized fertilizers, Zambia reduces its dependency on imports and supports the specific nutrient needs of Zambian crops and soils.
This localized fertilizer production improves yields, making farms more productive and profitable. It also creates jobs in the manufacturing process, giving Zambians a chance to earn a living by working in this industry rather than relying on foreign-produced fertilizers. The U.S. benefits when Zambia’s economy grows stronger, too.
A more prosperous Zambia is a more stable trade partner and offers more opportunities for American businesses to collaborate with Zambian companies. “The innovation that is taking place across this continent will unlock incredible economic growth and opportunities for the entire world,” said Vice President Harris when she visited Zambia in 2023.
“Our investments will benefit not only the people on this continent but the people in the United States and around the globe.” Some foreign investors only want to extract raw materials, a strategy that often leaves little benefit for local communities.
The United States’ approach, by contrast, encourages local partners to process and export finished goods. This means nations like Zambia develop their own processing and manufacturing capabilities, retain more of the value from their resources, and reduce reliance on foreign processors.
Looking to the future, the United States is expanding investments in the Lobito Corridor. This infrastructure development will connect Zambia with global markets via the Atlantic Ocean, providing faster, easier access for Zambian businesses to import and export goods.
By improving trade routes and boosting regional trade capacity, the Lobito Corridor is expected to help Zambian businesses access new markets and build stronger trade relationships worldwide. This commitment to infrastructure is part of a broader U.S. strategy to support Zambia’s economic potential, not just through aid but by investing in projects that foster long-term economic growth.
