In June 2007, the Millennium Challenge Corporation signed a five-year, $506.9 million compact with the Republic of Mozambique designed to increase the productive capacity of the population in the Northern districts, with the intended impact of reducing the poverty rate, increasing household income and reducing chronic malnutrition in the targeted districts. The four projects are designed to foster investment and increase economic opportunities for Mozambicans. The compact in Mozambique entered into force (EIF) in September 2008, formally initiating the five-year timeline for project implementation.

This project aims to control the spread of Coconut Lethal Yellowing Disease (CLYD), to, encourage diversification into other cash-crop production, and eliminate biological and technical barriers that hinder economic growth among farms. Activities include:

• Tree removal and replacement;
• Assist farmers in adopting new cropping systems and developing alternative sources of cash income during the time required for new coconut trees to reach productive age; and
• Provide technical support to introduce better practices aimed at increasing crop yields.

The objective of the Land Tenure Services Project is to establish more efficient and secure access to land by improving the policy framework; upgrading land information systems and services; helping beneficiaries meet immediate needs for registered land rights; and better access to land for investment. This project is comprised of three mutually reinforcing activity areas:

• Policy Monitoring Pillar: Improve the policy environment by addressing implementation problems with the existing land law, conducting regulatory reviews to improve upon it, and supporting training for predictable, speedy resolution of disputes;
• Capacity Building Pillar: Build the institutional capacity to implement policies and to provide quality public land-related services by investing in human and information resources; and
• Site-specific Pillar: Facilitate access to land use by helping individuals and businesses with clear information on land rights and access and with registering their grants-of-land use.

This project aims to improve access to markets, resources, and services; reduce transport costs for the private sector to facilitate investment and commercial traffic; expand connectivity across the Northern region and the southern half of the country; and increase public transport access for individuals to take advantage of job and other economic opportunities.

• Rehabilitate key segments of the National Route 1 which forms the backbone of country’s transportation network.

This project aims to increase access to a safe, reliable water supply and sanitation services thereby increasing productivity and reducing water-borne diseases - the leading cause of death in children under five.

• Provide water supply and sanitation services in six cities in the provinces of Zambézia, Nampula and Cabo Delgado;
• Provide water supply in two mid-sized towns in Nampula and Cabo Delgado provinces;
• Provide rural water supply services covering water points in the Nampula and Cabo Delgado provinces; and
• Provide capacity building of local institutions and policy development.