The governments of Zambia and the United States of America have signed a landmark US$491.75 million Millennium Challenge Corporation (MCC) Zambia Farm-to-Market Compact to enhance agriculture and agro-processing sectors across the country. The signing ceremony took place in Lusaka, with President Hakainde Hichilema highlighting the importance of the grant in driving Zambia’s economic recovery and transformation agenda.
This debt-free grant consists of US$458 million from the MCC and US$33.75 million from the Zambian government. It is designed to strengthen food security, reduce the cost of transporting goods to markets, and increase access to farming equipment and financing for agricultural infrastructure. The initiative also aims to catalyze policy reforms to attract more private investment in Zambia’s agriculture sector.
Upgrading Roads to Enhance Market Access
Key infrastructure projects under 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 expected to enhance market access for farmers and unlock the agricultural productivity in those regions.
President Hichilema emphasized that the grant fits perfectly into Zambia’s economic recovery program, especially following the successful restructuring of the country’s debt. “This compact comes at the right time and aligns with our transformation agenda,” said the President. He also reiterated the government’s commitment to strengthening its partnership with the United States and encouraged more US private sector investments in Zambia.
Collaborative Efforts and Sector Productivity
The President appealed to 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 continued support and underlined that this grant reflects the deepening ties between the two nations.
Speaking at the same event, Minister of Finance and National Planning Situmbeko Musokotwane highlighted that the Compact was developed through a consultative process involving academia, civil society, and other stakeholders. He explained that the roads selected for upgrading were chosen due to their high agricultural potential and productivity.
The Farm-to-Market Compact is expected to significantly boost Zambia’s agricultural sector by lowering transportation costs, increasing market access, and promoting private investment, laying a strong foundation for long-term economic growth.
This initiative signals a new chapter in US-Zambia cooperation, with both governments committed to building a more sustainable and prosperous future.
Can’t wait to see this actualized. We have talked enough; now let’s put boots on the ground and see some action.
” Debt free grant”……no wonder we will never develop…and praise singers because of their begger mentality will start jumping up and down…WHEN WILL AFRICANS LEARN TO FEND FOR THEMSELVES INSTEAD OF WAITING FOR BREADCRUMBS FROM THE WEST….