Lusaka, ZAMBIA (October 18, 2024) – Millennium Challenge Corporation (MCC) Chief Executive Officer (CEO) Alice Albright joined Zambia’s Minister of Finance Situmbeko Musokotwane, yesterday, in signing the $491 million Zambia Farm-to-Market Compact designed to deliver sustainable and inclusive economic growth for the people of Zambia.
The grant—comprised of $458 million from the American people and a $33 million contribution by the Zambian people—was signed in the presence of the President of the Republic of Zambia, Hakainde Hichilema, as part of ongoing activities celebrating Zambia’s 60th anniversary of independence and 60 years of US-Zambia relations.
“This compact makes it easier for Zambia’s farmers and agriculture processors to sell their products and grow their businesses, an output critical to Zambia’s economic growth. MCC recognizes Zambia’s potential to not only become food secure, but also a leading supplier of agriculture goods to the region and the world,” said MCC CEO Alice Albright. “Today’s signing symbolizes our countries longstanding friendship and investment in the people of Zambia’s efforts to achieve food security and continued prosperity for the next 60 years and beyond.”
The Zambia Farm-to-Market Compact will be implemented by the Millennium Challenge Account (MCA)–Zambia II, a new entity created by the Government of Zambia specifically to lead implementation of this compact program.
"The signing of the second Millennium Challenge Compact today signifies yet another landmark in our bilateral cooperation and friendly relations with the people and Government of the United States of America,” said President of Zambia Hakainde Hichilema. These bilateral relations have been built on a solid foundation of shared values and principles of democracy, good governance, respect for the rule of law and the protection of freedoms and rights of citizens. My Government will continue to uphold these principles.”
The Zambia Farm-to-Market Compact consists of four projects:
The Roads and Access Project seeks to increase access to markets and services for rural communities, especially women and youth, by improving 210 miles of road and transportation infrastructure and strengthening national road asset management.
The Asset Finance Project aims to increase investment in electricity, irrigation, logistics, and processing equipment and infrastructure such as grain and produce storage facilities for agriculture and agro-processing. The project will focus specifically on making the cost of financing these investments more affordable for borrowers and providing incentives for lenders.
The Agriculture Policy Reform and Institutional Strengthening Project seeks to increase private sector-driven agriculture and agro-processing and support broader efforts by the Government of Zambia to address key policy challenges constraining private sector production and trade in grain markets.
The American Catalyst Facility for Development Project aims to facilitate the U.S. Development Finance Corporation’s (DFC) investments in Zambia in sectors such as agriculture and enable projects to reach financial close.
The Zambia Farm-to-Market Compact follows a previous MCC investment of more than $377 million in Zambia, which increased Lusaka residents’ access to water, sanitation and drainage services, strengthened institutional capacity of the water utility, and reduced barriers to trade and investment. That previous compact—which benefited an estimated 1.2 million people—rehabilitated a water treatment plant along the Kafue River, which provides 40 percent of Lusaka’s clean water. The project built nearly 150 miles of water and sewage pipelines and improved key sewage treatment ponds, allowing the facility to support an estimated 156,000 residents–roughly eight (8) times more than its previous capacity.
The Millennium Challenge Corporation is an independent U.S. government development agency working to reduce global poverty through economic growth. Created in 2004, MCC provides time-limited grants that pair investments in infrastructure with policy and institutional reforms to countries that meet rigorous standards for good governance.