MCC and Private Investment
MCC is an innovative and independent U.S. agency dedicated to fighting global poverty by stimulating broad-based, private sector-led economic growth. Created by Congress in 2004 with bipartisan support, MCC works with countries that have demonstrated good democratic and economic governance, together with a strong commitment to fighting corruption. MCC invests in projects identified and led by its partner countries, based on specific criteria emphasizing evidence-based decision making, sound policies, accountability, and measurable results.
Engaging the private sector
MCC supports its partner countries to establish market-oriented policies and develop capacity within government agencies to implement investment opportunities with the private sector. MCC grants and technical support help develop capacity to prepare and negotiate transactions with the private sector, as well as monitor the performance of private sector-funded projects in infrastructure, health care, education, and other areas that are specifically identified as binding constraints to economic growth.
MCC can provide grants to make the selected investment opportunities financially viable for private investments via viability gap financing schemes and other transparent, market-oriented methods. MCC also plays a key role in establishing platforms for discussion with the government and private investors about investment opportunities.
Catalyzing private growth
MCC-funded programs strive to improve the core market-supporting functions of its partner country governments, from investments in infrastructure and human capital to projects that strengthen institutions and regulatory environments. Road investments reduce travel times and costs for private businesses, power projects improve access to reliable electricity for households and manufacturing plants, health and education initiatives strengthen intellectual capital and labor productivity, and property rights projects improve incentives for and security of investments. For example:
- In Jordan, MCC investment and transaction support catalyzed $110 million in private capital that enabled completion of a $223 million build-operate-transfer water treatment plant expansion.
- In Benin, MCC’s $188 million port expansion project facilitated a follow-on private 25-year operator’s concession that brought another $256 million in private investment.
- In Ghana, General Electric credits MCC’s engagement with the Government of Ghana and interested investors as a key factor in its decision to build a 1,000-megawatt power park valued at $1.5 billion.
In addition, through fair and transparent international procurements, MCC compacts create significant opportunities for contractors, consultants, engineers, and others.
To learn more, visit mcc.gov/privatesector or contact Carl Sangree, head of Finance, Investment and Trade, at email@example.com or Lorelle Curry, associate director of public engagement, at firstname.lastname@example.org.