Press releases
Zambia Has Achieved Eligibility For U.S. Millennium Challenge Account Funding
December 12, 2008. Lusaka.
Lusaka –The Millennium Challenge Corporation (MCC) on Thursday selected Zambia as one of only three new countries eligible for large-scale grant funding under the Millennium Challenge Account or MCA, the U.S. Government’s innovative foreign assistance program that aims to reduce poverty through income generation and economic growth.
The announcement was hailed by U.S. Embassy Chargé d’Affaires, Michael Koplovsky, as an unprecedented opportunity for the Government of the Republic of Zambia (GRZ) to undertake a massive effort to reduce poverty in ways that align with the GRZ’s 5th National Development Plan. “With this announcement,” said Mr. Koplovsky, “the MCC has formally recognized the GRZ’s commitment to invest in its people through education and health care, and its commitment to free markets, facilitating business, good governance, and fighting corruption.”
Zambia’s selection makes it eligible to negotiate an MCA “compact” with the MCC. Becoming “compact eligible” is a huge milestone but, as the Chargé d’Affaires pointed out, there is still much work to be done before Zambia can receive an MCA grant. “Zambia has successfully managed the road leading to eligibility,” he said, “but this announcement represents a new road that is just beginning.”
Following yesterday’s announcement, Zambia can now begin the process of negotiating a work plan for an integrated, rational five-year MCA program. The application process will be driven by the GRZ and will involve public consultation. Usually compacts are signed only after detailed negotiations.
In 2007 and 2008, the GRZ participated in a two year-long $20 million MCA Threshold Program that focused on facilitating business registration, countering corruption and improving border management to help Zambia meet eligibility criteria. In June, Zambia successfully completed the program, which was designed to help Zambia meet the stringent MCA compact eligibility qualification process. As a result of this cooperative effort, Zambia passed 17 of the 18 MCA eligibility indicators, including the crucial corruption related one. Jason Villar, the Senior Advisor for the Threshold program, was pleased by yesterday’s announcement. “This reinforces the strength of our partnership with the GRZ,” he said.
In congratulating Zambia, MCC Chief Executive Officer Ambassador John Danilovich said, “Your commitment to good governance and dedication to promoting economic freedom and investing in your people has placed you among a select group of countries working diligently to reduce global poverty through sustainable economic solutions.”
Along with Zambia, Colombia and Indonesia were also given compact eligibility yesterday. These states join just 18 countries that have completed compacts and a half dozen more that are in the process of negotiation.
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