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US Millennium Challenge Announces Agreement to Provide Nearly $500M in Financing to Mozambique

US Millennium Challenge Announces Agreement to Provide Nearly $500M in Financing to Mozambique

The Governments of Mozambique and the US sealed in Maputo, a set of commitments referring to the scope and objectives of the Compact II (CDF) through the Millennium Challenge Corporation (MCC), whose Financing Agreement of approximatelly US$500M is expected to be signed later this year.

The signed commitments comprise three areas to be covered under Compact II, the Promotion of Investment in Commercial Agriculture, Connectivity and Rural Transport, and Climate Change and Coastal Development, marking the consolidation of the design process of the development initiative, which will take place throughout the national territory, but with a geographic focus on the Zambeze province.

The Government of Mozambique was represented by the Minister of Economy and Finance, Ernesto Max Tonela, while the MCC counted with presence of its Executive Vice-President, Mahmoud Bah, who yesterday began a six-day visit to the country where he will be visiting the Zambeze province. Mozambique Minister of Public Works Carlos Mesquita also participated in the ceremony as the initiative will give particular priority to political and institutional reforms planned for the road sector, within the framework of which Mozambique is committed to increasing the funds available for road maintenance by 50%.

Speaking on the sidelines, Minister Max Tonela said that “the signing of this Aide-Memoire unequivocally signals the commitment of both the Government of Mozambique and the US Government, through the MCC, to the development of a Compact II for Mozambique that is robust and innovative. We believe that, in a short time, the projects that will constitute Compacto II will be completed by the technical teams, with which the conditions will be created so that the Financing Agreement can be initiated as soon as possible”.

Mozambique Minister of Public Works Carlos Mesquita and Mozambique Minister of Economy and Finance

MCC Vice President Mahmoud Bah said that “MCC is proud to, once again, establish a partnership with Mozambique, with the aim of supporting inclusive economic growth for the citizens of this country” and congratulated the Minister of Economy and Finance of Mozmabique for taking the drivers seat to make change happen.

It should be noted that the highest-level national authorities received, at the beginning of this year, correspondence from the top leadership of the MCC informing them of the re-election of Mozambique to benefit from Compact II, which succeeds Compact I, implemented in the country from 2008 to 2013.

Althought the total amount of the program was not specify, Mr. Bah estimates approximately US$500M for the investment package.

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