On 14 December 2021, Zambia was selected as being eligible for the development of a second compact by MCC. Following the selection, Government designated Millennium Project Completion Agency-Zambia (MPCA-Z) as the entity responsible for development of the second compact (Compact II) working closely with MCC and all other stakeholders.
The development process for Compact II commenced in 2022. A review of the country’s economic and social development was undertaken to understand the factors constraining economic growth and poverty reduction in Zambia. The review involved consultations with various stakeholders including Government, private sector, civil society, traditional authorities, and cooperating partners. On the basis of the outcome of this review, agriculture and agro-processing (AAP) was identified to be the most desirable growth path for Compact II to effectively contribute to diversified, sustainable and inclusive economic growth, job creation and poverty reduction. The AAP focus is in line with the Government‘s diversification agenda in the National Development Plan.
Currently, the focus for compact development is on defining potential viable projects for Compact II.