Zambia and USA Sign Compact Investment

Zambia and the Unites States of America have signed an amendment to realign the US$491 million Millennium Challenge Compact Programme.

The compact has been signed through the Millennium Challenge Corporation (MCC). Us$458 million is being contributed by the United States, while US$33 million is Zambia’s contribution.  

Felix Nkulukusa Secretary to the Treasury said the realignment will support Zambia’s agriculture and critical minerals sectors through the Lobito Corridor, an essential economic route for the country.

Mr. Nkulukusa said the programme is expected to present economic opportunities and strengthen sustainable growth through strategic infrastructure investments and government reforms.

He said under the Roads and Access Project, road segments of priority have been highlighted and aligned to the Lobito Corridor in North-Western and Copperbelt provinces. He reinforced that the Lobito Corridor is one of Africa’s most important emerging trade and logistics routes.

Mr Nkulukusa said compact investments will support access to finance for electricity, irrigation, logistics, processing equipment and infrastructure for small and medium-sized agricultural enterprises. He emphasised the importance of the investments to support project developers across agricultural enterprises, and that reforms under the programme will likely increase private sector participation in grain production and trade.

Mr. Nkulukusa said governance in the mining sector will be strengthened and boost investment in mineral exploration as a result of the initiative.