Zambia Strengthens SME Trade with Lobito Corridor Agreement

Zambia has taken a significant step toward fostering the growth of Small and Medium Enterprises (SMEs) through the signing of a Memorandum of Understanding (MOU) for the Lobito Corridor Trade Facilitation Project. 

This collaboration, between Zambia’s Ministry of Commerce, Trade, and Industry and the Ministry of Small and Medium Enterprise Development, is supported by the African Development Bank (AfDB) and aims to enhance trade within the Lobito Corridor states: Zambia, Angola, and the Democratic Republic of Congo (DRC).

The MOU signing ceremony, held in Lusaka, was attended by senior government officials, directors, and members of the press. 

During the ceremony, Mrs. Subeta K. Mutelo, Permanent Secretary for the Ministry of Small and Medium Enterprise Development, expressed enthusiasm for the partnership, noting that it would help drive the development of innovative SMEs, create job opportunities, and contribute to Zambia’s sustainable economic growth.

A key aspect of the project is the establishment of SME incubation centers within Zambia’s industrial hubs in Solwezi, Kitwe, and Ndola, strategically located along the Lobito Corridor. These hubs will offer resources, technical support, and a platform for emerging businesses to grow.

In addition, the project will conduct market surveys across Zambia, Angola, and the DRC to identify high-demand products, which will allow local SMEs to engage in regional value chains and access export markets in Angola and the DRC.

With an investment of $8.1 million, the Lobito Corridor Trade Facilitation Project aims to enhance trade flows, reduce barriers, and strengthen commerce between the three nations. 

Mrs. Lillian Bwalya, Permanent Secretary for Trade in the Ministry of Commerce, Trade, and Industry, emphasized the transformative potential of the initiative, stating, “The primary objective of this project is to enhance domestic and cross-border trade, ensuring SMEs along the Lobito Corridor benefit from improved access to regional markets.”