Zambia and the United States have signed an amendment to realign the US$491 million Millennium Challenge Compact Programme through the Millennium Challenge Corporation.
Of the total amount, US$458 million will be provided by the United States Government, while US$33 million will be contributed by Zambia.
Secretary to the Treasury Felix Nkulukusa said the realignment will support Zambia’s agriculture and critical minerals sectors through the Lobito Corridor, which is regarded as a key economic route for the country.
Mr. Nkulukusa said the programme is expected to create economic opportunities and support sustainable growth through strategic infrastructure investments and governance reforms.
He said that under the Roads and Access Project, priority road segments identified for rehabilitation have been aligned to the Lobito Corridor in North-Western Province and Copperbelt Province.
Mr. Nkulukusa described the Lobito Corridor as one of Africa’s emerging trade and logistics routes.
He said compact investments will support access to finance for electricity, irrigation, logistics, processing equipment and infrastructure for small and medium-sized agricultural enterprises.
According to Mr. Nkulukusa, the investments will also support project developers across agricultural value chains.
He added that reforms under the programme are expected to increase private sector participation in grain production and trade, strengthen governance in the mining sector and encourage investment in mineral exploration.
Mr. Nkulukusa further stated that the programme will improve the operation and maintenance of road infrastructure assets.
The information was contained in a statement issued to the media News by Secretary to the Treasury Felix Nkulukusa.
