MCC CEO Visits Lusaka as the U.S., Zambia Make Progress on Second Compact

LUSAKA, Zambia (June 22, 2022) - The Millennium Challenge Corporation's (MCC) Chief Executive Officer, Alice Albright, departed Zambia today after a series of site visits as well as meetings to discuss the development of MCC's second compact program with Zambia.

During the two-day visit, MCC leadership met with the President of the Republic of Zambia, His Excellency Hakainde Hichilema, and officials from the Ministries of Finance and Agriculture to discuss how MCC and the government can strengthen investments to further create opportunities for inclusive economic growth through this new grant program.

"I am truly delighted to be here in Lusaka for the first time and see the impact of investments made during our first compact while also deepening MCC's partnership with the Government of Zambia," said Albright. "Our initial joint analysis for a second compact has determined that Zambia's agriculture sector may be the key to unlocking inclusive economic growth given the right infrastructure investments and policy reforms - which may include projects in sectors that directly impact agribusiness such as energy and transportation.

"As we continue work together in the early stages of our compact development process, I look forward to identifying new opportunities that build on this analysis and our prior compact investments so we can improve the lives of the many Zambians who are battling extreme poverty every day."

During her visit, Albright also visited communities and key infrastructure projects supported by MCC's first compact in Zambia, including a hybrid solar-powered water pumping station at the Jack Compound in Lusaka as well as a neighborhood benefiting from new water and sanitation connections. At the Jack Compound, MCC and the Zambian government built 30 new communal water kiosks and 1,182 direct yard of water supply lines for household connections.

"It was so valuable to see first-hand how these investments are helping to improve the everyday lives of Zambians," added Albright. "MCC has transformed the lives of more than 1 million Zambians, and we are looking to do much more. From household drinking water and sanitation to power generation and crop irrigation, water is essential to a healthy life and a critical element of inclusive economic growth and our collective efforts to reduce poverty. I am proud to be part of the next chapter in our long, impactful partnership."

Given the positive impact these hybrid solar-powered stations supported by MCC's first compact, the Lusaka Water and Sewage Company installed two small solar pumping systems in 2021, and plan to install six more systems this year, expanding access to a reliable source of water to homes and businesses in additional communities.

MCC previously partnered with the Government of Zambia from 2013-2018 to implement a $355 million compact focused on urban water, sanitation, and drainage infrastructure and strengthening the Zambian government's capacity to effectively manage the water and sanitation sector. MCC and the Zambian government rehabilitated a water treatment plant along the Kafue River - which provides 40 percent of Lusaka's clean water - and built nearly 150 miles of water and sewage pipelines. The compact funded the upgrade and expansion of key sewage treatment ponds, allowing the facility to support an estimated 156,000 residents - which is roughly 8 times more than its previous capacity for 18,000. The compact is expected to benefit 1.2 million people over 20 years and will help ensure families and business have the water and sanitation, and drainage infrastructure needed to build a better future in Lusaka.

The Millennium Challenge Corporation is an independent U.S. government development agency working to reduce global poverty through economic growth. Created in 2004, MCC provides time-limited grants that pair investments in infrastructure with policy and institutional reforms to countries that meet rigorous standards for good governance, fighting corruption and respecting democratic rights.

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