Zambia and MCC Sign Agreement for $400 Million Development Program in Agriculture
Following a productive consultative meeting on Tuesday, April 16th, 2024, between the United States Millennium Challenge Corporation (MCC) and Zambia, a significant milestone has been achieved with the signing of an Aide Memoire in Washington DC.
This agreement solidifies mutual understanding regarding the scope and objectives of a new Compact, estimated at more than US$400 million.
Representing Zambia, Minister of Finance and National Planning, Dr. Situmbeko Musokotwane, MP, alongside MCC’s Principal Vice President for Compact Operations, Ms. Kyeh Kim, formalized the agreement.
The MCC provides substantial grants to deserving countries to bolster economic growth and reduce poverty through infrastructure projects. Zambia had previously received a grant of US$355 million in May 2012 for water, sanitation, and drainage infrastructure in Lusaka.
The decision to embark on a second Compact was made by MCC in December 2021, focusing on the agriculture sector to stimulate agricultural production and agro-processing.
Dr. Musokotwane emphasized the importance of this partnership in fostering economic growth, job creation, and poverty alleviation.
He outlined proposed projects for MCC financing, including road infrastructure improvement, asset finance to enhance access to affordable finance for agriculture-related investments, and agriculture policy reform and institutional strengthening to boost private sector trade in agricultural markets.
The next steps involve continued due diligence activities to refine project details. Dr. Musokotwane highlighted Zambia’s proactive engagement during the IMF-World Bank Spring Meetings, where formal requests for drought relief were submitted to various partners.
Additionally, a delegation led by Dr. Musokotwane, accompanied by key officials, is participating in the global parliamentary forum, ensuring Zambia’s representation and engagement in critical discussions.
