The United States and Zambia have inked a significant deal worth $491 million to bolster Zambia’s agricultural sector and drive economic growth. The agreement, signed by Millennium Challenge Corporation (MCC) CEO Alice Albright and Zambian Finance Minister Situmbeko Musokotwane, aims to enhance food security and create sustainable livelihoods.
The partnership, which includes a $458 million grant from the US and a $33 million contribution from Zambia, is part of a broader effort to strengthen bilateral ties and celebrate Zambia’s 60th anniversary of independence.
“This compact will empower Zambian farmers and processors to expand their businesses, contributing to the country’s economic growth,” said MCC CEO Alice Albright. “We envision Zambia as a food-secure nation and a major agricultural exporter.”
The Zambia Farm-to-Market Compact will focus on four key areas:
- Improving Road Infrastructure: This project will upgrade 210 miles of roads and transportation infrastructure, enhancing market access for rural communities.
- Boosting Agricultural Investment: The Asset Finance Project will provide affordable financing for investments in electricity, irrigation, logistics, and processing facilities.
- Reforming Agricultural Policies: This project will address policy challenges hindering private sector growth in the agriculture sector.
- Facilitating US Investment: The American Catalyst Facility will encourage US investments in Zambia’s agriculture sector.
This latest partnership builds on the success of a previous MCC investment of over $377 million, which improved water and sanitation services in Lusaka and benefited over 1.2 million people.
By investing in agriculture and infrastructure, the US and Zambia aim to create a more prosperous and sustainable future for the Zambian people.
