In a significant development for the agricultural sector, the governments of Zambia and the United States have officially signed a $491.75 million Millennium Challenge Corporation (MCC) Farm-to-Market Compact aimed at enhancing agriculture and agro-processing across Zambia. The ceremony took place in Lusaka, where President Hakainde Hichilema emphasized the vital role of this grant in promoting the country’s economic recovery and transformation.
This debt-free initiative comprises $458 million from the MCC and an additional $33.75 million from the Zambian government. It is designed to improve food security, reduce transportation costs for goods, and enhance access to farming equipment and financing for agricultural infrastructure. Additionally, the compact seeks to drive policy reforms to attract increased private investment in Zambia’s agriculture sector.
Key infrastructure projects outlined in the Compact include the upgrading of major roads, such as the Chipata-Lundazi road to Magodi and the Mumbwa to Landless Corner road. These improvements are anticipated to enhance market access for farmers and unlock agricultural productivity in these regions.
President Hichilema noted that the grant aligns seamlessly with Zambia’s economic recovery program, particularly following the successful restructuring of the country’s debt. “This compact comes at the right time and fits our transformation agenda,” he remarked. He further reaffirmed the government’s commitment to strengthening its partnership with the United States and called for more US private sector investments in Zambia.
The President urged all stakeholders in the agriculture sector to increase their productivity to fully benefit from the Compact. He expressed gratitude to the American people and government for their continuous support, highlighting that this grant represents the deepening ties between the two nations.
Minister of Finance and National Planning Situmbeko Musokotwane, who also spoke at the event, emphasized that the Compact was developed through consultations with various stakeholders, including academia and civil society. He explained that the roads selected for upgrading were chosen for their significant agricultural potential.
The Farm-to-Market Compact is expected to significantly bolster Zambia’s agricultural sector by lowering transportation costs, increasing market access, and promoting private investment, establishing a strong foundation for sustainable economic growth.
This initiative marks a new chapter in US-Zambia cooperation, with both governments committed to building a more sustainable and prosperous future.
