By Felix Katyetye
The Millennium Challenge Corporation (MCC) has granted Zambia a $458 million compact, marking a significant milestone in the ongoing partnership aimed at reducing poverty and fostering economic growth.
This new compact follows an earlier grant of $377 million, underscoring MCC’s sustained investment in Zambia’s development.
Announcing this milestone during a celebration in Washington D. C, MCC Principal Deputy Vice President Kyeh Kim hailed the agreement as the fastest in the organization’s history.
Kim expressed gratitude to the Zambian government for its dedication to improving the lives of its citizens and emphasized the compact’s potential to enhance the agriculture sector and agro-business.
“This will continue to push for the prosperity of the Zambian people, the compact started about three years ago. It has achieved its target and we are hopeful that this compact will improve the agriculture sector and improve agro-business in Zambia,” Kim stated.
In May 2024, MCC CEO Alice Albright traveled to Malawi and Zambia to celebrate progress in partnerships with both countries.
During her visit to Zambia, Albright met with President Hakainde Hichilema and other government officials to commend them for the swift progress towards finalizing the new compact.
Meanwhile Secretary to the Treasury Felix Nkulukusa highlighted the dedication of both MCC and Zambian teams in preparing the compact, noting the lessons learned from the previous compact and expressing confidence in a swift and effective implementation.
“We are sure that the implementation will be in the shortest time, the first compact taught us valuable lessons, and in the second compact, we are confident that the implementation will be even better” Nkulukusa said.
And Ambassador Chibamba Kanyama praised the Zambian delegation for the commitment, expressing optimism that the renewed African Growth and Opportunity Act (AGOA) will enable Zambia to boost its agricultural exports.
The new compact is expected to focus on agriculture and agro-processing, sectors identified as critical for unlocking inclusive economic growth in Zambia.
Among the Zambian delegation in Washington, D.C., was President Hichilema’s Economic Advisor, Dr. Pamela Nakamba, indicating the high-level commitment to this initiative.
This compact reinforces the strong partnership between MCC and Zambia, promising significant advancements in the country’s agricultural sector and overall economic development.
