Zambia and the United States of America have  signed a US$491.75 million Millennium Challenge Corporation (MCC) Zambia Farm to Market Compact deal aimed at enhancing the agriculture and agro processing sectors .

President Hakainde Hichilema said the compact has come at a right time as it fits into Zambia’s economic transformation agenda.

Mr Hichilema disclosed that the compact is a debt-free grant comprising US$458 million from the MCC and 33.75 million contribution by the government of Zambia.

He reiterated government’s commitment to deepening partnership with the US and urged America to have more US private sector investments in the country.

ZANIS reports that President Hichilema said this in Lusaka at the signing ceremony of the MCC Zambia Farm to Market Compact.

He said the Chipata-Lundazi road all the way to Magodi is earmarked for upgrading under the Compact as well as the Mumbwa to Landless corner roads, citing the agricultural productivity in the area.

He appealed to all stakeholders in the agricultural sector to become more productive so that the Compact materializes.

Speaking at the same event, Minister of Finance and National Planning Situmbeko Musokotwane said the Compact was agreed upon through a thorough consultative process involving academia, Civil Society Organisations and other stakeholders.

Mr Musokotwane disclosed that the roads selected under the Compact were selected due to the agricultural potential and productivity that exists in those areas.

And US Ambassador to Zambia Michael Gonzales described the Compact as the US ’s biggest investment in Zambia, and a single largest single grant as well as a turning point in the relations between Zambia and the US.

Mr Gonzales said the Compact is intended to spur inclusive economic growth, strengthen the country’s agricultural sector and create jobs.

He pointed out that America’s vision for Zambia is a dynamic, vibrant and inclusive economy which serves as an anchor and hub of a land-linked sub-regional economy.

“As we wrap our first 60 years, it is incredibly fitting that we do so by signing Zambia’s second MCC Compact to catapult our partnership forward,” said Mr Gonzales

He also praised Zambia’s extraordinary potential, especially with its large youth population, which he said is poised to become a highly productive labour force.

Also at the event, MCC Chief Executive Officer Alice Albright said the Compact will help unleash Zambia’s incredible agricultural potential as well as strengthen Zambia’s food security by lowering the cost of transporting goods to markets.

Ms Albright further said the Compact will increase the availability of equipment for farmers and processors, boost financing for infrastructure projects and catalyze reforms in the agriculture sector to grow private investments.

“This means 338 kilometers of improved roads in critical agricultural corridors, grants to finance electricity, irrigation, logistics and processing, helping large infrastructure projects in the agriculture and agro-processing sectors get access to capital and creating the right enabling environment for the private sector to thrive,” said Ms Albright.

She however said for the Compact to be successful it will require the tireless pursuit of transparency, accountability and rule of law throughout the life of the programme and beyond.

Meanwhile, Lusaka Province Minister Sheal Mulyata said the support is timely as the country resolves to make agriculture production climate resilient and that it is gratifying that the Compact will support the agriculture and agro-processing sectors to raise efficiency and resilience.

Ms Mulyata is confident that the Compact will inspire the discovery of greater opportunities during its implementation.