Zambia secures $491.75 million from Millenium Challenge Corporation to transform agric sector

Zambia has signed a US$491.75 million agreement with the Millennium Challenge Corporation (MCC) to enhance its Farm-to-Market compact initiative, aimed at transforming the agricultural sector.

The financial support package includes an American Catalyst Facility for Development Project worth US$8 million, with an additional US$45 million allocated for the Asset Finance Project.

Furthermore, US$25 million would be dedicated to the Agriculture Policy Reform and Institution Strengthening Project, while the largest portion—US$315 million—would focus on the Road and Access Project.

During the signing ceremony at the Mulungushi International Conference Center, President Hakainde Hichilema stated, “The support will help unleash Zambia’s incredible agricultural potential.”

He said that this initiative would significantly enhance the country’s food security and position Zambia as a potential food basket for the sub-region.

President Hichilema noted that the agreement aligned with the New Dawn government’s reconstruction agenda and expressed optimism about addressing the current energy crisis through ongoing efforts.

“We are working tirelessly behind closed doors to tackle these challenges ahead of schedule,” he added.

The President also extended condolences to the victims of Hurricane Milton, which recently wreaked havoc in Florida, USA.

U.S. Ambassador to Zambia, Michael Gonzales, highlighted that the agreement demonstrated the strong bilateral ties between the two nations, marking 60 years of diplomatic relations.

“This partnership reflects our commitment to supporting Zambia’s development,” Gonzales said.

MCC Chief Executive Officer, Alice Albright, expressed hope that the support would lead to Zambians leading happier, safer and more fulfilling lives.

Finance and National Planning Minister, Situmbeko Musokotwane, affirmed that the financial package would spur economic growth, facilitating lasting improvements in the agricultural sector.

In her welcoming remarks, Lusaka Province Minister Sheal Mulyata said: “The financial support is timely as the country seeks to find lasting solutions to the challenges posed by the drought affecting the 2023/2024 agricultural season.”

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