August 5, 2014
MCC and Africa
With six of the world’s 10 fastest growing economies, Africa is on the rise—and the Millennium Challenge Corporation is playing a leading role in helping Africans seize new economic opportunities.
MCC’s investments are specifically targeted to drive and sustain economic growth by attracting private sector investment. And by only picking countries that demonstrate a commitment to ruling justly, encouraging economic freedom and investing in their people, MCC is advancing shared values and supporting good governance across Africa.
The United States has a deep interest in a peaceful and prosperous Africa, not just to benefit all of Africa’s people but also to increase U.S. trade and investment in the interconnected global economy. MCC is a key contributor to the U.S. Government’s comprehensive strategy toward engagement with the continent, which focuses on economic, political, social, education, security, and environmental issues.
MCC has signed 16 compacts with 14 African countries and invested nearly two-thirds of its compact portfolio in African countries, helping contribute to priority areas for U.S. engagement with the continent, including:
Trade and investment
From modernizing ports in Benin and Cabo Verde to investing in roads in Tanzania and Ghana, MCC is helping its partner countries build the physical infrastructure necessary to increase trade. MCC works with African partner countries to remove internal barriers to trade through reforms in customs and national standards. This fosters stronger market conditions that give private enterprise—from local entrepreneurs to U.S. businesses—a level playing field to compete and thrive. MCC’s investments contribute to the U.S. Government’s Trade Africa initiative, which seeks to encourage internal and regional trade within Africa, as well as expand trade and economic ties between Africa, the United States and other global markets.
MCC is investing in power sectors across Africa to ensure businesses and households have safe, reliable and affordable sources of electricity—ultimately increasing business activity and improving lives for people throughout society. MCC’s energy investments are varied, from working with partner countries to reform power institutions, to expanding electrical grids and connecting communities—some for the first time. MCC is playing a major role in Power Africa, the U.S. Government’s initiative to double the number of people with access to power in sub-Saharan Africa, by developing compacts with three of the initiative’s six focus countries: Ghana, Liberia and Tanzania. MCC plans to invest more than $1 billion to support Power Africa by increasing access to electricity, strengthening the reliability of power systems and improving the sustainability of these countries’ energy sectors through infrastructure, improving laws and policies and building stronger power institutions.
Throughout Africa, MCC seeks to reduce the causes of food insecurity and hunger through a variety of investments in irrigation, farmer training, roads to markets, property rights, land policy, ports, storage facilities, rural credit, and more. MCC has played a key role in Feed the Future, the U.S. Government's global hunger and food security initiative, by leveraging a decade of agriculture- and food security-related investments and sharing experiences and lessons on measuring results and accountability.