The Millennium Challenge Corporation (MCC) has approved the "Farm-to-Market Compact" program in Zambia.
With a budget of $458 million funded by the MCC, the Zambian government is counting on this program to achieve inclusive economic growth in the agriculture and agro-processing sectors.
The program aims to reduce transportation costs for goods to markets, improve access to equipment for small and medium-sized farmers and processors, and increase financing for agricultural infrastructure projects. It will also drive reforms in the sector to attract more private investment.
This initiative comes as Zambia faces the consequences of the El Niño climate phenomenon, which has caused a drought in 84 out of the country's 116 districts since the beginning of this year.
As a result, maize production has dropped by 54%, reaching only 1.5 million tonnes in 2023/2024, the lowest level in 16 years.
According to the African Development Bank (AfDB), agriculture's contribution to GDP has fallen from 9.3% in 2012 to 3.3% in 2022, while the sector employs 24% of the labor force.