The Zambia threshold program targeted policy areas measured by three MCC eligibility indicators: Control of Corruption, Government Effectiveness, and Business Start-Up.
Zambia was one of the first countries selected by MCC to participate in the Threshold Program. Selected as eligible for the Threshold Program in 2004, Zambia did not meet MCC’s Compact eligibility criteria in the Ruling Justly and Economic Freedom categories. To assist the Government of Zambia in the design of its threshold program, MCC provided an indicator analysis that highlighted key policy constraints (inclusive of those raised by the eligibility indicator institutions).
Zambia’s threshold program had three components that were designed to support the program’s objective to combat administrative corruption and reduce administrative barriers to increased trade and investment.
Zambia Threshold Program Implementation
The Zambia threshold program agreement was signed in May 2006 and concluded in February 2009. As the program administrator, USAID managed day-to-day program operations in Zambia and oversaw Chemonics, the primary implementer. The threshold program partnered with nine government ministries, departments and agencies and two nongovernmental organizations. Threshold program activities were concentrated in the capital, Lusaka, with discrete interventions at the subnational level.
The Zambia threshold program was largely implemented as planned and the majority of outputs were met. Significant program results include the establishment of one-stop shops that automated procedures for business registration and tax payment and reduced processing times for customs operations.
Zambia is now Compact-eligible and is partnering with MCC to develop a five-year Compact. (link to Zambia’s compact page)