John L. Kunda, Millennium Project Completion Agency-Zambia
Mercy Ng’andu, is a retired teacher small scale farmer from Mumbwa district who grows vegetables, maize, and other crops for sale and domestic consumption. She has more than four permanent employees and a group of women that are earning a living out of her farm.
The Zambia Farm-to-Market Compact aims to address key constraints within the country’s agriculture and agro-processing sectors. It will do this through a combination of investments in rural road infrastructure and maintenance; by increasing access to finance for irrigation, electricity, storage facilities, logistics and processing equipment and infrastructure for agriculture; and agricultural policy reform initiatives. Investments in these areas will help the Government of the Republic of Zambia substantially diversify and grow its economy through greater private investment while reducing poverty.
The compact includes four projects: (1) the Roads and Access Project, (2) the Asset Finance Project, (3) the Agriculture Policy Reform and Institutional Strengthening Project, and (4) the American Catalyst Facility for Development Project.
The Agriculture Policy Reform and Institutional Strengthening Project aims to improve institutional capacity to facilitate private sector production and trade in grains. It will enhance the public sector’s operational efficiency and its ability to develop and implement policies, regulations, and procedures conducive to private sector engagement while also strengthening ancillary market support institutions such as a commodity exchange and a reliable market information hub.
The ACFD Project aims to facilitate U.S. International Development Finance Corporation (“DFC”) investments in Zambia. ACFD grant funding will enable DFC-led projects, that may not otherwise be viable, to reach financial close. While ACFD eligible projects would include projects in any of the areas identified as constraints to economic growth, it also seeks to increase access to affordable finance for private investment in energy, irrigation, logistics, and processing assets that are building blocks for growth in agriculture value chains.
The Asset Finance Project aims to increase access to finance for investment in energy, irrigation, logistics, processing (EILP) equipment and infrastructure for agriculture value chains for both men and women-owned agricultural small and medium enterprises (Agri-SMEs) and project developers.
The Agri-SME Asset Financing Activity (AAF Activity) aims to improve Agri-SMEs access to affordable financing by providing funding for:
- Performance based grants to financial service providers (FSPs) and equipment providers (EPs) to incentivize lending and finance to Agri-SMEs
- Design of an impact-investing funding vehicle that raises funds for Zambian agri-enterprises
- Technical assistance to build capacity for lending to Agri-SMEs and to Agri-SME borrowers to improve financial literacy, business planning, and linkages to market opportunities.
The Zambia Project Preparation Facility for EILP (ZAMPPF Activity) aims to increase the number of EILP infrastructure projects that support agriculture value chains to reach financial close by providing:
- Technical assistance to project developers (e.g., GRZ and private developers) to develop bankable EILP infrastructure projects;
- Technical assistance and capacity building for public and private project developers.
The Roads and Access Project aims to decrease transportation costs in prioritized agricultural corridors. The project will improve road condition and climate resilience, improve access of residents, particularly women, to the road network and markets, and improve road asset management to ensure the sustainability of investments.
The Improving Roads Activity aims to improve road conditions, quality, access, and climate resilience for selected segments within the identified agricultural corridors through the design, construction, expansion, rehabilitation, upgrades, and/or strengthening of selected roadways.
The Improving Access Activity aims to create and/or improve connections (physical and non-physical) to markets and agricultural activities for rural populations within prioritized agricultural corridors.
The Strengthening Zambian Road Management Activity aims to improve road asset management with an emphasis on road maintenance investments in Zambia.
Milestones in Compact Development
| Milestone | Date | Description |
|---|---|---|
| Board Approval | September 18, 2024 | The MCC Board of Directors approved a new compact with Zambia. |
| Eligibility Notification | December 13, 2023 | The MCC Board of Directors reselected Zambia as eligible to continue developing a second compact. |
| Eligibility Notification | December 8, 2022 | The MCC Board of Directors reselected Zambia as eligible to continue developing a second compact. |
| Eligibility Notification | December 14, 2021 | The MCC Board of Directors selected Zambia as eligible to develop a second compact. |