STATEMENT FOR HON. DR. SITUMBEKO MUSOKOTWANE, MP MINISTER OF FINANCE AND NATIONAL PLANNING AT THE SIGNING OF THE COMPACT DEVELOPMENT FUNDING GRANT AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF ZAMBIA AND MILLENNIUM CHALLENGE CORPORATION ON THURSDAY, 8TH DECEMBER, 2022
REPUBLIC OF ZAMBIA
STATEMENT FOR HON. DR. SITUMBEKO MUSOKOTWANE, MP MINISTER OF FINANCE AND NATIONAL PLANNING
AT THE SIGNING OF THE COMPACT DEVELOPMENT FUNDING GRANT AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF
ZAMBIA AND MILLENNIUM CHALLENGE CORPORATION
ON THURSDAY, 8TH DECEMBER, 2022
Mr. Michael Gonzales, Ambassador of the United States of America in Zambia
Ms. Kyeh Kim, Principal Deputy Vice President, Millennium Challenge Corporation
Mr. Felix Nkulukusa, Secretary to the Treasury
Senior Government Officials Present
Members of the Press
Ladies and Gentlemen
I welcome you all to the signing ceremony for the Compact Development Funding Grant Agreement between the Government of the Republic of Zambia and the Millennium Challenge Corporation.
The Millennium Challenge Corporation (MCC) is an independent foreign assistance agency of the United States Government whose mandate is to assist developing countries in their effort to reduce poverty through sustainable and inclusive economic growth for countries performing well in good governance, economic freedom, and investing in people. The signing of the compact development funding grant agreement today demonstrates Zambia’s continued commitment to strengthening the capacity of its institutions and implementing solid economic and fiscal policies and improving the lives of all Zambians. It is also a clear demonstration of the long and strong bilateral relations that exist between the Republic of Zambia and the United States of America and specifically with the Millennium Challenge Corporation.
Ladies and Gentlemen
Zambia’s engagement with the Millennium Challenge Corporation started in 2004 when the country was selected for a Threshold Program that was implemented from 2006 to 2009. Later the Millennium Challenge Corporation provided a grant worth US $354.8 million for the implementation of the first Compact from 2013 to 2018. The first Compact focused on investments in the water, sanitation and drainage infrastructure in Lusaka and benefited over 1 million people.
In December 2021, the Board of the Millennium Challenge Corporation selected Zambia as eligible for the development of the Second Compact. Since the beginning of this year, Government has been working with the Millennium Challenge Corporation and other stakeholders to undertake various activities towards the development of the Second Compact.
Ladies and Gentlemen
The Compact Development Funding Grant Agreement that we have signed today will advance US $8.3 million to the Zambian Government to be utilized to assist Zambia in developing a Compact focused on the areas set forth in the prioritized binding constraints to growth and will support project definition, project development which includes preliminary program design and feasibility studies, as well as administrative costs.
The Second Compact is expected to focus on enhancing agriculture production and productivity through infrastructure investments.
Ladies and Gentlemen
As I conclude my remarks, allow me on behalf of the Government and the people of Zambia, to thank the Government of the United States of America, and the Millennium Challenge Corporation in particular, for the continued collaboration and financial support rendered to our country.
With this support towards compact development, I look forward to the speedy conclusion of all the preparatory activities to facilitate for the actual undertaking of the compact investments.
Ladies and Gentlemen
Thank you very much for your attention.
