Washington backs Zipline’s African expansion with $150 million

The U.S. Department of State has awarded $150 million to Zipline, a U.S.-based drone logistics company, marking its first-ever results-based financing partnership aimed at expanding access to life-saving drone delivery services across Africa. 

Under the pay-for-performance model, funds will only be released when African governments sign expansion contracts and commit to ongoing operational costs, ensuring long-term sustainability within national public health systems.

This investment will support Zipline’s rapid scale-up of autonomous logistics infrastructure, enabling participating countries to expand from regional operations to nationwide coverage. At scale, the initiative is expected to reach more than 130 million people, triple the number of health facilities serviced to 15,000, create over 800 high-skilled jobs, and generate up to $1 billion in annual economic gains by resolving logistics and credit bottlenecks that hinder commerce and healthcare delivery.

Rwanda will be the first country to implement the expansion, followed by Côte d’Ivoire, Kenya, Nigeria, and others. Rwanda’s next phase includes a third distribution centre, urban drone delivery using Zipline’s precision aircraft, and a flagship global testing facility for hardware and software development.

U.S. officials say the investment reflects a shift toward innovation-driven foreign aid. Under Jeremy Lewin, Secretary of State for Foreign Assistance, the partnership will allow African governments to maintain and further invest in an American-built health commodities supply chain network, strengthening long-term impact and local ownership. 

Zipline’s CEO and co-founder, Keller Rinaudo Cliffton, emphasised that the U.S. government is “doubling down” on the company’s use of AI, robotics, and autonomous logistics to improve health outcomes at scale.

Zipline currently operates in Rwanda, Ghana, Nigeria, Côte d’Ivoire, and Kenya and has expanded commercially in the U.S. and Japan with its electric, autonomous delivery aircraft. In Nigeria, early operations in three states have already reduced stockouts, increased treatment rates, and created new service points even in communities without health facilities, according to the Minister of Health and Social Welfare, Muhammad Ali Pate.

The company’s growth comes after navigating financial strain in 2022 and early 2023. Its credit rating improved significantly by late 2024 and into 2025. Zipline has raised more than $888 million in total funding, including a $350 million Series G round in 2024 and a $330 million Series F round in 2023, which valued the company at $4.2 billion. Its estimated annual revenue stands at approximately $187.4 million.

As the model rolls out, development experts say results-based financing could become a blueprint for future U.S.–Africa cooperation. The approach encourages accountability, accelerates successful innovations, and supports African governments in building resilient, modern health systems powered by advanced technology.