Poverty Reduction Blog Tag: Food Security
Posted on March 31, 2014 by Randall Wood, resident country director, Senegal
If Oumou Khairy Fall and Téty Fall are smiling in this picture, it’s because their lives are already better off—economically and socially—since the beginning of MCC’s investment in Senegal. And the work has just begun!
Both come from the northern village of Mboubéne in the Senegal River Valley, part of Africa’s dusty Sahel but the heartland of Senegal’s rice production zone. Production there is expected to increase by 10,500 hectacres by the time MCC’s five-year, $540 million compact ends in September 2015, and the dramatic improvements to irrigation channels, pumps and water conduits will help local rice farmers plant three crops per year instead of one.
That’s big news in a country that imports nearly 70 percent of its rice, Senegal’s main staple food.
Speaking of rice, Oumou and Téty would like to offer you some. They competed and won the right to manage the cafeteria for local contractor Eiffage Senegal, a contractor involved with the construction funded through the compact's $170 million Irrigation and Water Resources Management Project. It’s hot in Senegal’s north this time of year, and construction is hot, sweaty work that stirs up an appetite in a hurry.
Oumou smiles. “These men are always hungry,” she says. “And they come back and back for more.”
“I think they like our food,” laughs Téty.
Oumou and Téty start serving breakfast while the first rays of the sun are still throwing long shadows and the desert air is cool. The day’s heat will arrive in less than an hour as the Eiffage crew lines up for their first meal of the day. “Coffee,” Téty explains, “with lots of powdered milk, fresh bread and some stew.”
While the crew heads out to pour concrete and lay the iron rebar that will eventually bring the additional irrigation waters over the rice fields, Oumou and Téty begin preparing for lunch. When the sun is overhead, the temperature soars to well past 90 degrees. The Senegal River Valley swelters. The workers come back in for some nourishment, camaraderie—and shade. Lunch is a stew of local red beans in tomato sauce, a specialty of the region.
“It seems like no matter how many beans we buy in the market, we need more,” Téty explains. “These men are always hungry, and food is so important.”
Téty has neatly summed up just one way this project itself is important. When construction concludes in 2015, MCC’s investments in rice production and irrigation will help the Senegalese people get closer to meeting their demand for the staple. But it’s paying dividends already in the local economy. With well over $100 million in construction contracts ongoing in Senegal’s north, MCC’s investments are indirectly generating jobs for many hundreds of laborers, drivers, engineers, surveyors, community interpreters, social organizers, technicians, specialists, and more.
The impact these workers are having on the local economy—from food to gas to equipment to haircuts to lodging and more—is rippling through the Senegalese economy. The beans Téty purchases at the local market are just the beginning.
MCC’s program in Senegal places a special emphasis on gender equality from project design to implementation to evaluation, and these two women are an example of that. MCC’s construction contracts stipulate that women be given opportunities to join the workforce in whatever jobs they qualify for and are willing to do. Women are increasingly taking up positions such as flag person, gas station attendant and warehouse overseer. Moreover, if Senegal has any female welders, they are to be given an equal chance to work.
There are many opportunities for women to benefit from the sudden influx of capital and labor in Senegal’s north. This cafeteria is just one of them.
The compact is expected to benefit more than 1.1 million people over the next 20 years. As I finish my scalding hot glass of attaya—sweet, Senegalese tea—I watch Oumou and Téty manage their kitchen as the lunchtime crew cleans their plates and prepares to head back out for the afternoon’s work. I’ll be proud when this program is complete, and the people of Senegal benefit from this investment. But I’m even prouder to see the impact the investment is already having.
Posted on March 31, 2014 by Christopher Davis, Development specialist, Burkina Faso
Scents of onions, tomatoes and damp earth permeated the morning air as we spoke with representatives of women’s associations in the Dî Perimeter, one of the Millennium Challenge Corporation’s principal investments in Burkina Faso. My colleagues and I were visiting the construction site to listen to community members who received their newly irrigated land last spring.
Located only a few miles from the country’s border with Mali and near the convergence of the Sourou and Mouhoun rivers, the village of Dî and its namesake 5,535-acre perimeter provide the region’s farmers with irrigation all year. In the past, most of these farmers could cultivate only during the rainy season. The women told us they were grateful to finally have the opportunity to farm land of their own.
“Before the MCC project, women [in this area] didn’t have the right to cultivate on their own land unless they were widows,” said Sayibata Ki, president of Association Benkadi No. 3. “We took care of the kids at home, prepared meals and had little work to do outside of market days. Now we can go out to farm our fields and make our own decisions about which part of our harvest we keep or sell.”
MCC's five-year, $481 million compact with Burkina Faso contains four projects: agriculture, roads, rural land governance, and education. In addition to the irrigation of the Dî Perimeter, the compact’s $141.9 million Agriculture Development Project is working with the Burkinabe to improve water management, diversified agriculture and access to rural finance.
An estimated 4,500 farmers and their families in Dî are expected to be working in the perimeter by the time the compact ends in July, and the trip gave us an opportunity to talk personally with some of them following their first growing season. Preliminary reports indicate that farmers harvested more than 1,800 acres of corn, soybeans and other legumes on the land on which construction had already been completed.
The project included a strong focus on ensuring benefits reach local women, who are often not recognized as landholders and are therefore last in line to receive land security. More than 130 agricultural associations are receiving land in the Dî Perimeter, composed entirely of women and youth from neighboring communities. Each cooperative member receives a plot of about one-tenth of an acre; last year, more than 2,000 individuals formed organizations to be eligible to receive the land.
Cooperative members are receiving kits containing tools, seeds and fertilizers. MCC is also funding trainings on how to plant and apply fertilizers to maximize yields, efficient irrigation methods and ways to increase soil fertility.
Most of the cooperative members are learning these techniques for the first time.
“We were taught how to make compost in our courtyards with things we can easily find around our village,” Ki said. “I give my children a bit of money to go and search for the supplies and then I use the compost on my land. It is much cheaper than buying fertilizer.”
The association members dug canals to deliver water directly to their parcels and learned that they would manage water resources that feed their canals.
“Mastering the irrigation schedule and working well together was very difficult in the beginning,” said Elisabethe Tiama, a member of the Hérakaura cooperative. “[MCA-Burkina Faso contractors] helped us to get organized and we were able to set a five-day watering calendar based on the rotation of the village markets. They also showed us the best ways to grow our corn and onions.”
All of the farmers we spoke with said they were pleased with their yields and looking forward to harvesting the lucrative dry-season cash crops they planted a couple of months ago. I was most impressed with the initiative and ingenuity some of these entrepreneurs exhibited, quickly solving problems and adapting to a more formal and communal irrigation schedule.
By April 2014, these businesswomen will be joined by their neighbors from throughout the region as the full 5,535 acres are delivered to beneficiaries. Additional plots of land will be distributed via a lottery before then.
Ki can’t wait.
“My husband and I both put our names into the land lottery,” she said. “We are ready for more farmland!”
Posted on March 14, 2014 by Cynthia Berning, program officer, agriculture and land
Developing a clear and well-defined program logic—the chain of events by which a given project is expected to lead to increased household income—is a crucial step in designing MCC projects. The clearer a project’s program logic, the easier it is to design activities, implement them, monitor them, and evaluate results.
As MCC assesses its portfolio from its first 10 years, what’s clear is that projects without well-defined program logics are much more difficult to implement and evaluate.
We also learned that having a clear program logic makes it a lot easier to explain:
- Why we are doing this project?
- What are the results we expect?
- What are the benefits of those results?
- What do we need to do to get there?
When a wide range of stakeholders understand a project and its intended outcomes, they are likely to be more engaged in implementing it and delivering results.
When decision-makers and stakeholders understand “why”, they can better explain the project to others, becoming more supportive advocates and champions. Finally, when decisions need to be made along the way due to budget or timeline issues, the program logic helps the team determine how proposed changes might affect achieving key outcomes and, ultimately, income growth.
MCC’s develops a program logic by:
Step 1: Defining the problem
Farmers’ incomes might be low, land rights might be hard to define or enforce, or rural populations might have limited access to irrigation or financial services. It is important to define the root causes of these problems and the economic challenges they create. For example, why are land rights difficult to enforce? What behaviors are affected by insecure land tenure? Do people invest less in their agricultural production than they might if they were more confident that they would reap the eventual gains? Do they spend an excessive amount of time resolving land-related disputes or attempting to complete land transactions?
Step 2: Identify the links between these problems and incomes
For MCC to make an investment, we need to demonstrate how it will result in higher incomes for beneficiaries. Determining the specific pathways through which incomes will rise is the tricky—but important—part. For example, do we hope that registering property rights will make landholders more secure? Do we envision then that they will make longer-term investments in their land through irrigation equipment, improved tools or perennial crops like fruit trees, increasing their land’s productivity and their incomes? Are there other ways to provide landholders with the security of ownership that might be less costly than registration? Or is the reason people aren’t planting perennial crops related to poor land-use planning in their village rather than insecure rights? Sector experts and economists at MCC and in partner countries must probe questions like these. .
Once we have defined the outcomes that lead to increased income, we must think strategically about the activities that will produce those outcomes. This means focusing on the outcomes that are essential for increased income and avoiding funding activities that matter less. For example, stakeholders might identify lack of credit as a constraint to increasing land productivity; however, the data does not link resolving land tenure problems to resolving the credit problem because there might be other reasons why access to credit is limited. In this example, a credit activity or credit-related outcomes may not be included among the proposed pieces of the project in the program logic.
Step 3: Use program logic to track progress toward results
MCC then uses program logic diagrams as guides in tracking progress on outcomes. The logic diagram will help the team select indicators to monitor throughout the compact and set realistic targets based on assumptions of how long it will take for certain activities to produce outcomes and for those outcomes, in turn, to produce increases in income. By returning often to the program logic, project teams and evaluators can make sure to ask the important questions, measure the right things and gather evaluation data at a time that makes logical sense.
Does your organization use a similar approach—or a completely different methodology—to define program logic and ensure that projects and activities lead to measurable results? Any suggestions to improve MCC’s approach?
Posted on February 28, 2014 by Cynthia Berning, program officer, agriculture
Traditionally, water-related projects have been classified as strictly irrigation, livestock or water and sanitation projects—but in reality, people use water for many uses. People use water for drinking, cooking, washing, livestock watering, agriculture, and business purposes. When development professionals fail to consider these multiple uses, overuse, asset degradation, breakage and the inability of water-management institutions to actually manage these unintended uses have threatened a project’s sustainability.
Instead, project planners should consider all the various needs and uses for water in a community and then attempt to incorporate those needs into project design right from the start. In this way, the project can mitigate risk and provide greater impact.
MCC adopted this approach in several of our irrigation and livestock projects. In Mali, for example, the irrigation project included consideration of animal crossings, drinking troughs alongside the irrigation canals and the drilling of additional watering points for livestock—all based on consultations with pastoralists. In addition, special areas were created for women to wash clothes and perform other domestic tasks so they would not have to use the irrigation canals and risk drowning or catching a water-borne infection.
In Namibia and Burkina Faso, we incorporated the water needs of wild animals; elephants and hippopotamuses in the area had the potential to cause major damage to the project’s water infrastructure. This was done through placement of elephant-only watering holes away from the project, planting hippopotamus-friendly grasses away from infrastructure and creating natural barriers with trees to protect the areas. In Mongolia and Mozambique, some newly installed water points provided separate valves for human and animal use, lowering the risk of contaminating the drinking water supply.
In other MCC projects, a lack of attention to the multiple uses of water led to challenges during implementation. In the Ghana Compact, for example, we discovered that an irrigation project would actually cut off the supply of water to five villages that were using it for drinking and other domestic uses. Though initially flagged as a critical social risk, the team was able to turn this problem into an opportunity to meet both the domestic and agricultural needs of the community by investing in small-scale water treatment plants that would supply solar-treated drinking water. At the same time, cattle watering points were incorporated into the design.
In the end, the communities benefited from improved water for all uses. However, by not incorporating multiple uses into the design from the beginning, the project missed an opportunity to integrate health and hygiene training with agricultural training and water provision.
MCC is committed to making sustainable investments that respond to beneficiaries’ needs. Considering all the various uses for water in a community while planning a project creates a bigger impact for our projects, and it is a goal for the planning of future water projects.
Have you seen water projects used for unintended purposes? Do you have experiences with multiple uses of water being incorporated into a project or being neglected during project design?
Posted on February 24, 2014 by Brian Foster, agribusiness consultant
Farmer cooperatives, particularly in the dairy industry, form a very important and successful part of American agriculture. The model gives small farmers the benefits of professional storage facilities, processing equipment and reliable demand for their products that would be out of reach if they had to work on their own.
The cooperative model is a risky and challenging approach that requires a lot more effort than working with private enterprises. Members need to build trust and agree on roles, responsibilities, decision-making authority, and other difficult issues—but the results can be transformational for an entire community if it is done well.
MCC set out to make the same model work in El Salvador through the $71.8 million Productive Development Project, implemented from 2007 to 2012. The project worked with one new and two existing farmer co-ops in the dairy and horticulture fields as a way to contribute to rural economic development—but with mixed results.
The most challenging issue facing all three co-ops in El Salvador was obtaining loans to support ongoing operations as the end of the compact approached. Each co-op attempted to resolve the issue in a different way:
- The existing but failed dairy co-op owned a plant and equipment from a previous project, so its strategy was to approach commercial banks and attempt to secure financing using the equipment as collateral. The organization secured financing but ultimately failed for business reasons.
- The other existing dairy co-op had the advantage of being part of the Salvadoran government’s school milk program, guaranteeing a steady demand for fresh milk and timely payments. The risk, of course, was that a change in government or a significant reduction in the government’s support for the school milk program could put them out of business. Their main solution was to diversify their market for milk and look for a second large firm to buy fresh milk.
- The most perplexing challenge was with the start-up horticulture co-op, which had a lot going for it: It was well-managed, had firm supply deals with well-established retail supermarket chains and seemed to have loyal members dedicated to the “cooperative ideal.” The problem was that payment from the retailers was often delayed, causing severe cash flow problems. The co-op had very few assets to use as collateral, so bank financing was a challenge. Eventually, it managed to secure some loans, but at a high interest rate, and was attempting to raise funding internally from members.
The experiences with these three agricultural cooperatives in El Salvador presented an important lesson: The ability to access finance is paramount to sustainability and needed to be addressed at the start of the project. We must consider that once a co-op is organized (or resurrected) with a solid business model, good management, a competitive product mix, and plenty of capital at its creation, it will likely still need additional access to financing. In this project, access to working capital was the key stumbling block for steady growth among the three Salvadoran agricultural co-ops.
Have you had any experiences setting up agricultural co-ops as part of development projects? How have other projects addressed challenges around finance?
Posted on February 14, 2014 by Damiana Astudillo, associate director, agriculture
(This post is part of an ongoing series on food security and is adapted from the Winter/Spring 2012-13 issue of Knowledge and Innovation Network Journal, a technical publication featuring lessons, innovations, ideas, and thinking behind MCC’s poverty reduction investments around the world.)
How do you ensure the sustainability of a post-harvest investment after a donor project ends? And how do you incentivize private sector investment without providing giveaways that risk being underutilized or benefiting businesses that are financially better off?
When post-harvest losses were identified as a major cause of inefficiency in Ghana’s agriculture sector, MCC struggled with how to make investments to reverse these losses sustainable and private-sector driven while simultaneously benefiting poor smallholder farmers. One answer involved constructing 10 agribusiness centers throughout the country as part of the country’s five year, $547 million MCC compact. The agribusiness centers have the objective of reducing post-harvest losses by offering processing, drying, storage, and marketing services for staple crops.
Each agribusiness center is jointly owned by a private sector investor (with a 70 percent share) and an agriculture cooperative of about 1,000 smallholder farmers (30 percent share). In exchange for its share, the private investor was required to contribute the land on which the facility was built and about $35,000 in start-up working capital, as well as business plan, documented financial and management capacity and market connections. Each farmer shareholder was required to contribute a 100-pound bag of grain as a membership fee. MCC funds covered the building and basic equipment of the centers and legal support to formally establish the new companies as well as capacity building for the farmer cooperatives. In this way, both the investor and the farmers had a stake in the profitable operation and maintenance of the facility.
Selecting individual investors, selecting and building the capacity of farmer-based organizations (FBOs) and training shareholder members on what it means to hold a share of a business were the most challenging parts of the project. Building trust between the farmers and their FBOs—as well as between the FBOs and individual investors—took time.
The legal technicalities of setting up these ownership arrangements, which were unprecedented in Ghana, required significant legal resources. And to select which businesses would receive the assistance, the Millennium Development Authority of Ghana (the local organization implementing the compact) evaluated proposals from 30 businesses who competed for the 10 partnership opportunities.
Some of the challenges included determining which businesses were most capable of sustaining operations and which private sector investors had the greatest potential of partnering with smallholder farmers. Additionally, assessing which locations made sense as aggregation centers, based on the availability of infrastructure and access to markets, was challenging. The end result is a set of agribusiness centers that will be able to reduce post-harvest losses by 20-30 percent.
Share your experiences! Have you worked on a project that facilitated partnerships between investors and smallholder farmers? How have other projects addressed the problems of losses and under-investment in post-harvest infrastructure? How have projects attracted investors to work with smallholder farmers in various parts of the value chain?
Click here to read the full article.
Posted on February 7, 2014 by William Valletta, MCC due diligence officer, Access to Land Project
(This post is part of an ongoing series on food security and is adapted from the Winter/Spring 2012-13 issue of Knowledge and Innovation Network Journal, a technical publication featuring lessons, innovations, ideas, and thinking behind MCC’s poverty reduction investments around the world.)
Does having a title to your land lead to increased food security for you and your family?
A rigorous impact evaluation of MCC’s Access to Land Project in Benin hopes to prove it does. Noting unclear property rights can act as a binding constraint to economic growth in Benin, MCC set out to map and formalize land rights throughout the country. In addition to an urban parcel titling program, the project worked with 400 villages to create rural landholding plans, which map the land around each village and define and record the customary rights of possession to each parcel.
These records are archived, creating a system of recording land transactions and settling land disputes. The planned impact evaluation, conducted by the World Bank and projected to be published later this year, asks questions about changes in behavior as a result of participation in this rural landholding planning endeavor:
- Are land rights perceived as more secure?
- Do land markets work more efficiently and is land used more productively long-term?
- Is there an increase in the planting of perennials, tree crops and other agricultural investments?
- Is there an increase in trust in local institutions?
- Are people more engaged in village land management?
- Does paid wage employment change?
- Do women participate more in household decision-making?
- Does the experience of women-headed households differ from that of male-headed households
Though it is too early to answer these questions with statistical data, anecdotal evidence suggests that villages that have formalized their land rights through this process have seen an increase in the active use of fields and the planting of higher-value perennial and tree crops. When the findings of the evaluation are released, positive results will indicate that this model is an effective way to increase investments in the agricultural sector and contribute to food security in rural areas throughout Africa.
Tell us what you think! Have you observed or experienced increases in agricultural investment following the formalization of land rights? What other models of land formalization elsewhere have been successful?
Click here to read the full article.
Posted on January 31, 2014 by Leonard Rolfes Jr., senior property rights advisor, MCC, and Alfousseyni Niono, land issues and financial services coordinator, MCA-Mali
(This post is part of an ongoing series on food security and is adapted from the Winter/Spring 2012-13 issue of Knowledge and Innovation Network Journal, a technical publication featuring lessons, innovations, ideas, and thinking behind MCC’s poverty reduction investments around the world.)
How can newly irrigated land be allocated to farmers in a way that is fair and transparent and leads to efficient agricultural production while also providing an opportunity for the poor and vulnerable to climb out of poverty? This was one of the big questions that the Alatona Irrigation Project in central Mali set out to answer.
The project—part of MCC’s five-year, $435 million compact with Mali—converted more than 12,000 acres of dry scrub land into rich, productive irrigated land suitable for growing rice and vegetables. Once the irrigation infrastructure was built, the land needed to be allocated to people who would farm it.
MCA-Mali, the local organization implementing the compact, first allocated 12-acreunits if the land to the families who were displaced by the project and who could no longer use the land for grazing and other livelihood activities. For the remaining units, it was necessary that the people who received land had the knowledge and resources to make productive use of it—while trying to correct the deep-rooted inequalities in the region by encouraging the participation of women, the landless and other disadvantaged groups. Every proposed solution risked antagonizing some part of the population who believed they deserved more of the land than they were being allocated.
In the end, a two-step process was used to allocate the remaining land. First, each applicant was evaluated based on their current access to land (the landless received extra points), farming and irrigation experience (more experience equaled more points), proof of having paid water fees in the past (the land had to be purchased and water fees paid), membership in an association or cooperative, access to farming tools and adequate resources, and gender and age (women and youth received extra points). Each applicant was given a point score, and those who passed a minimum point threshold entered the second stage: a lottery.
The lottery was conducted publicly and transparently to ensure that the outcome was fair and accepted by all parties. To maximize women’s access to land, joint-titling was encouraged, allowing land owners to name their spouse as a co-owner of the land, which will prevent women from losing land access in the event of a husband’s death.
The effort required substantial community outreach to make sure residents fully understood the process and criteria for applying for irrigated land. The hope is that this successful model for land allocation and joint titling will be replicated throughout Mali and other countries in West Africa whenever land needs to be allocated.
Tell us what you think! Have you had experiences with land allocation or determining who gets access to land in other development projects? How were criteria determined, and how accepting was the community?
Click here to read the full article.
Posted on January 24, 2014 by Dave Cole, Natural Products Activity manager, MCA-Namibia, and Karen Nott, institutional development specialist, MCA-Namibia
Can a spiny little desert plant really contribute to food security? It can in Namibia, where the indigenous medicinal plant known as devil’s claw is harvested, dried and sold to exporters by small producer groups.
Because of MCC’s five-year, $304 million compact, the number of organized producer groups who harvest and sell devil’s claw has already more than tripled. The plant, however, is also protected by Namibian law to prevent its overharvesting, making the balance between conservation and income generation tricky.
With the help of MCC, the Government of Namibia ratified a law in 2010 that allows it to more easily trace the sourcing of indigenous natural products and issue permits to produce and sell a sustainable level of devil’s claw.
The compact helped create a sustainable harvesting model that trains and registers harvesters who apply for a group permit, a traceability system for quality control and record keeping, monitoring of sustainable harvesting methods, a reliable partnership with a local exporter to access markets and market information, and a premium price paid directly to harvesters.
The private sector’s role is fundamental to this model, ensuring the sustainability of the activity long after the compact ends later this year. Meanwhile, MCA-Namibia is encouraging harvesters to form cooperatives and producer groups, giving them a stronger voice in negotiating contracts.
Share your experiences! Have you marketed indigenous natural products or helped to establish sustainable harvesting practices in another value chain? We’d love to read about your experiences and continue this conversation.
Click here to read the full article.
Posted on January 10, 2014 by Jennifer Lappin, former Moldova deputy resident country director, and Cynthia Berning, program officer, agriculture
(This is the first post of an ongoing series focusing on food security and is adapted from the Winter/Spring 2012-13 issue of Knowledge and Innovation Network Journal, a technical publication featuring lessons, innovations, ideas, and thinking behind MCC’s poverty reduction investments around the world.)
How do you revive an agricultural sector that is still trying to function as part of a decades-old collapsed system? MCC is trying to do just that in Moldova, a country once dubbed the “orchard of the Soviet Union.”
Following the fall of communism, Moldova’s vast orchards and vineyards were privatized into thousands of tiny plots. The centralized irrigation systems soon failed, and farmers transitioned to low-value rain-fed grain crops. The farmers who continue to grow fruits and vegetables often ship them unsorted, in bulk and in open trucks to the low-quality Russian wholesale markets—the same way they’ve been doing for decades.
These practices ultimately lead to lower prices for Moldovan farmers, who are struggling to compete in regional markets against firms from neighboring countries that employ improved practices and offer higher-quality products.
To tackle this problem, MCC and USAID partnered on a jointly-funded five-year program to target specific weak links in agricultural value chains. For example, programs trained growers of high-value crops in quality-improving practices, helped Moldovan sanitary/phytosanitary control offices more efficiently certify produce destined for export, linked exporters with buyers through international trade fairs, and developed a national brand for Moldovan produce.
Moldova is the poorest country in Europe; its five-year, $262 million compact invests irrigation reconstruction, access to agricultural finance, and the rehabilitation of an integral section of the country’s national road network—all with the aim of allowing Moldova to become more regionally competitive.
The challenge is bringing an outdated sector up to speed fast enough to recapture some of the market share Moldova lost in recent years to Poland and other regional neighbors. While there’s a risk that Moldova’s prominence in European markets can never be regained, Moldovans believe differently and are leveraging their MCC partnership to give their little country—with its rich soil, perched between eastern Europe and the European Union—the nudge it needs to climb back onto the world fruit and vegetable stage.
Tell us what you think! What else can we do to expedite the transition to higher-value, export-quality fruits and vegetables among Moldovan farmers?
Click here to read the full article.
Posted on August 5, 2013 by Glenn Lines, Farmer Income Support Project Lead, Mozambique
Sustainable development is a term frequently used in foreign assistance, but it is poorly understood and seldom given the prominence it deserves. Development practitioners often focus on making disbursements and reaching final project targets while neglecting to ensure investments will be maintained and continue to benefit community members after a project ends.
At MCC, we want to ensure that our projects provide the best possible impact by helping boost household incomes after we leave.
In Mozambique, MCC made great strides toward emphasizing sustainability. Like many other development projects, MCC’s Farmer Income Support Project (FISP), a key component of Mozambique’s $506.9 million MCC compact, has taken several innovative steps to advance the principle.
Over the past 3½ years, the project worked to reduce the prevalence and impact of Coconut Lethal Yellowing Disease (CLYD), a deadly disease. CLYD causes affected trees cease producing coconuts and eventually die; the trees must be removed and replaced to stop the spread of the disease.
This involved mass mechanized felling and burning of infected and dead trees; planting new, disease resistant seedlings; community education and awareness programs to assist coconut growers to identify infected trees and prevent the future spread of the disease; and technical assistance for crop diversification.
Now in the last year of implementation, the project largely has met or exceeded its targets. Communities are identifying infected trees and monitoring the spread of the disease. The disease incidence rate has fallen from an estimated 5 percent to 1 percent in project areas. Nurseries are producing disease-resistant seedlings to replace trees lost to the disease. And small-scale coconut producers affected by the disease are diversifying into cash crops.
For example, one smallholder farmer working with FISP produced and marketed more than 500 metric tons of pigeon pea, cow pea, sesame, and groundnuts at regional and international markets last year.
Even with this substantial progress, the question of sustainability remained: How can beneficiaries continue to control disease transmission without mass mechanized tree felling?
The answer lay with affected farmers, who have been felling trees manually for much longer than the life of the compact and putting economic incentives in place to continue promoting farmer-led manual felling.
MCC and MCA-Mozambique asked the project implementation team to modify their focus to reflect this reality. Transitioning from a project-driven, chainsaw-reliant strategy to a more sustainable, community-based felling strategy is well underway now. All mechanized tree felling has stopped. Instead, community felling teams equipped with personal protective equipment and well-stocked first-aid kits are following best practices for manual felling.
Farmers are not only felling dead trees but also actively identifying and removing infected trees and replanting them with disease-resistant varieties using skills they acquired through the project’s training. In the long run, this will help manage the disease incidence rate after the compact closes in September.
Perhaps the most encouraging aspects of the transition has been the way the felling teams have handled the logs harvested from felled trees. The initial plan was for community manual felling teams to sell the logs to local carpentry shops as raw material. However, with additional business training and equipment supplied by the implementing contractor, the felling teams capitalized on market dynamics and are now producing planks and beams to sell to local builders and carpenters, who are producing desks, chairs, tables, doors, and window frames for local schools and homes.
General demand for wood, which is increasing with a growing population, is now effectively linked to community-based CLYD disease surveillance and control. This provides the economic incentives to sustain farmer-led interventions apart from the compact’s project well into the future.
Posted on June 28, 2013 by Daniel W. Yohannes , Chief Executive Officer
After a number of events and meetings in Morocco that marked the upcoming completion of that country’s MCC compact, I flew to Dakar, Senegal, where I joined President Obama for the first part of his historic trip through Africa. What a magnificent opportunity!
The energy and excitement in our West African partner country were palpable, with signs and banners everywhere welcoming President Obama, the First Lady and our delegation. Alternating Senegalese and American flags lined the boulevard from the airport all the way to the Presidential Palace. From the street, Senegalese of all ages waited patiently for a chance to wave to the motorcade that carried us to meet President Sall.
The Senegalese have good reason to be proud that their country is President Obama’s first stop on the continent. And, I was just as pleased to be part of events that unfolded there, since MCC, through our $540 million strategic investment, is playing a significant role in strengthening Senegalese and American priorities, namely good governance, democracy and food security.
Sound democratic governance and the rule of law throughout Africa are fundamental ingredients for generating and sustaining the economic growth that will provide Africans a future of greater opportunity. They are also key to creating the right conditions to stimulate private sector-led activities and attract greater private investment—all of which fuel the growth necessary for families and communities to prosper. The Senegalese are rightly proud of their democratic traditions, from the fact that government has transitioned peacefully from leader to leader ever since the country’s independence to their role in the sub-region as peacekeepers. And Senegal’s blossoming civil society turned out in droves as President Obama and his family toured historic Gorée Island.
In Africa and elsewhere, MCC continues to set a high standard for governance, partnering only with countries that rule justly and democratically, invest in their people and provide citizens with economic opportunity, as evidenced through our annual country scorecards. African governments are stepping up to meet this challenge by reforming their policies to become eligible for MCC assistance.
President Obama and our delegation, together with the Senegalese, also emphasized joint efforts to advance Africa’s food security through mutually beneficial partnerships with governments, NGOs and the private sector. MCC is playing an essential role in ensuring Senegal furthers its ability to feed its people by investing in major irrigation and road projects that will help farmers in some of the country’s poorest communities expand their agricultural productivity and access markets more easily. At a roundtable attended by agriculture ministers from throughout West Africa, we discussed the importance of an enabling environment, the crucial role played by the private sector and the opportunities that good governance and strategic partnerships can provide in energizing agriculture as well as all the businesses and commercial ventures that result from greater agricultural production. One of the participants at the roundtable summarized the reality best: “Africans don’t want handouts; they want handshakes. Africa is ready for business.”
It has been rewarding to join President Obama during his visit to Senegal. I am proud that the MCC-Senegal partnership stands as one shining example of the kind of work we are doing and the progress we are making to support good governance and advance food security in Africa.
Posted on May 1, 2013 by Daniel W. Yohannes, Chief Executive Officer
Former U.S. Secretary of State Condoleezza Rice participated in MCC’s 2013 Forum on Global Development this past Monday and engaged in a lively discussion with Frank Sesno, the Director of the School of Media and Public Affairs at The George Washington University. Dr. Rice described the MCC model as the best combination of American interests and values. She sees this in the U.S. Government’s willingness to partner with the developing world through MCC to help countries determined to help themselves. She sees this in how MCC partners within countries, engaging directly with citizens, businesses, government ministries, and nongovernmental organizations and encouraging them to map out their own, homegrown path to development. And, she also sees MCC’s strength in catalyzing partnerships between developing countries, who motivate each other to reform their policies in order to compete and qualify for MCC funding, in what she—and so many others—aptly call the MCC Effect.
We share Secretary’s Rice affirmation of the power of partnerships. Results-focused partnerships that leverage our limited resources, amplify our intended impact and sustain the benefits of our investments have been—and will continue to be—a priority for MCC. With support from both Chevron and the United Nations Foundation, Monday’s Forum created the perfect opportunity to discuss how partnerships advance effective development and make a lasting difference in the lives of the world’s poor. More than 200 people attended as we celebrated such partnerships by recognizing the achievements of this year’s recipients of MCC’s Country Commitment Award, Corporate Award and Next Generation Award.
Mrs. Sophia Mohapi of MCA-Lesotho received MCC’s Country Commitment Award, recognizing her efforts to partner with Lesotho’s government to secure additional funding to sustain the MCC-funded investments made in health and water. Green Mountain Coffee Roasters, Inc. won MCC’s Corporate Award, recognizing this Vermont company’s strong partnerships with fair trade coffee growers in MCC partner countries that help promote food security and long-term prosperity. Jessica Matthews and Julia Silverman of Uncharted Play were presented the Next Generation Award by DC United star player Dwayne De Rosario for their SOCCKET, a clever soccer ball invention that doubles as an eco-friendly portable generator. By forging partnerships with sponsors and local implementation partners around the world, the SOCCKET creators have ensured that minutes of play can lead to hours of electricity for those families struggling off the electrical grid. These honorees demonstrate what is possible through partnering. I invite you to learn more about their stories and be inspired by their compassion and creativity to uplift the poor and vulnerable.
We were also pleased that Senator Patrick Leahy of Vermont and Deputy National Security Advisor Michael Froman could join us. Senator Leahy concluded the Forum by presenting MCC’s Corporate Award and reaffirming that partnerships are key to delivering development assistance effectively. Mr. Froman highlighted the importance of integrated and coordinated strategies, including input from MCC as well as private companies, to the Administration’s global development strategy.
What continues to resonate with me from this week’s Forum is the sheer determination and commitment by government, civil society and the private sector to do more by partnering more. This is what has made—and will continue to make—a tangible difference in the lives of the world’s poor.
Posted on July 30, 2012 by Steve Kaufmann, Chief of Staff
While visiting our compact work sites in Senegal last week, I was struck by the ways in which water can both take and support life. My first site visit took me to the village of Ndioum, where MCC is working with MCA-Senegal to build a 160 meter bridge over the Doué River. Now, to get from their homes to their fields, many of the residents must take either pirogues (small canoe-like boats) or a ferry which runs infrequently and is often under repair. Tragically, fatal accidents can occur when pirogues tip due to strong currents or poor weight distribution.
After surveying the work site, my colleagues and I struck up conversation with two village elders. The elders explained that they have been waiting for over 25 years for a bridge to be built. While we were speaking, a young boy named Masseck joined our conversation. He was excited for the bridge to be completed; he told us that his older brother had drowned while crossing the river, and he didn’t want to lose another family member. We knew the river was dangerous, but Masseck’s story reminded us of the urgency of completing construction of the Ndioum Bridge. It will not only save lives, but will improve access to the fertile lands across the river and help farmers get their crops to market.
As we were touring the site, a man approached our car and asked if he could take us to visit the old irrigation pump in the Ngallenka area. We agreed, and upon arrival, our new friend, Mamadou Alanane Hame, began to speak passionately about his experience working with MCC.
Mr. Hame emphasized the participatory decision-making process that allowed him, as an expected beneficiary, to voice his opinions on the project. He remembered that during compact consultations, community members had talked about the importance of irrigation to help assure food security in the region. Now, with improved means to bring critical water to agricultural fields, the local population will plant crops and boost their yields. This unsolicited praise provided strong reinforcement for the importance of MCC’s transparent practices and our commitment to listening to beneficiaries and our partner countries.
Reflecting on my trip, the importance of water is more striking than ever. The agricultural viability of the Sahel, a zone that extends the entire width of Africa from Senegal in the west to Eritrea in the east, is rapidly decreasing as desertification claims an increasingly large amount of previously fertile land every year. As the inhabitants of the Sahel find themselves at greater risk of famine, the difference between food security and insecurity can be the difference between life and death.
MCC has reason to be proud for investing in over 30,000 hectares of irrigated land in Senegal, which is expected to directly benefit more than 250,000 individuals. In partnership with MCA-Senegal and the residents of Ndioum and the Ngallenka area, MCC is implementing water and infrastructure projects that will help to save lives, promote economic growth and reduce poverty.
For more information about the Senegal Compact, visit www.mcc.gov/senegal.
Posted on June 18, 2012 by Jon Anderson , Mali Resident Country Director
For the past five years, MCC has worked with Malian organizations on an ambitious and integrated program to develop more than 5,000 hectares of irrigated land in Mali's Alatona zone. The country-led project included large scale irrigation works, road improvements, rural infrastructure, investments in education and health, land reform and titling, rural financial services, and other activities designed to help almost 650,000 people.
I have lived in Mali for more than 18 years, and I can attest to the meaningful impact the project has had on beneficiaries’ lives.
However in May 2012, the MCC Board of Directors approved termination of the Mali Compact due to an undemocratic change in government and Mali’s non-compliance with MCC’s eligibility criteria. MCC and MCA-Mali are in the process of winding up the projects in Alatona and Bamako, and the compact will be terminated on or before August 31—sooner than would have been the case.
It was a very tough decision to make, but MCC works only with countries that uphold the principles of democratic governance and the rule of law. The military coup and recent events in Mali are in contradiction with those principles. Nevertheless we shouldn’t lose sight of the lives our projects impacted. One resident of the Alatona region, Aburu Sabu Sangare, was so grateful for the work we accomplished in his area that he put his thoughts down on paper in the local language and found a way to pass it along to the U.S. Government.
I wanted to share the letter with you to provide a sense of the accomplishments, the importance, the goodwill, and, frankly, the transformation the Mali Compact helped create.
Thank you MCA-Mali – by Aburu Sabu Sangare
When considering effort, perseverance and keeping one’s word, quality work is better than talk. There is currently a large American organization helping Mali to put an end to poverty, difficulty and suffering in a place called Alatona. Every strong person, give your best effort; every weak person, give your best effort! As for them [MCA-Mali], they have completed what was in their power to do. May God assist us.
In 2007, MCA-Mali sent interviewers to come to our region to ask questions in each village. From door to door, they asked questions of each family. They got along very well with all the inhabitants. No conflict arose between the interviewers and the interviewees. No one argued and the work was peaceful, pleasant, and joyful, without any bad feelings.
After these inquiries, they brought excavators and vehicles. All this equipment arrived and went out to work all over the area. Some machines removed trees. Other machines dug canals. Other vehicles were brought to transport workers back and forth, or to transport rocks and earth to build houses. They recruited masons and brick makers. We were included in the offers of work. When they had gotten the workers, they chose skilled people that they made supervisors. They would say, “Look, see the correct way to do the work, do it like this.” So the work began and the brick makers made good money. They too thank MCA-Mali. The village chiefs are the first in thanking MCA-Mali because they are very, very happy. They say thank you because MCA-Mali gave everyone equal treatment.
Even the Fulfulde teachers benefitted. They gained more learning and much wealth. Anyone you saw who could operate motors or vehicles was happy. Itinerant traders were the happiest of all. They say that no one benefitted from the MCA-Mali project more than they did. They said that even if you had a whole warehouse of food, you would sell it all because there was such abundance of workers. Even goats, sheep and cattle were selling well. Chicken were being bought up more quickly than anything else. Even animal merchants recognized the change in the economy and so did the boat and canoe operators.
The brick makers and builders thank MCA-Mali for giving them baseball caps, shoes, and gloves for the work. When the machines and vehicles started working, they made pile after pile of dirt. These piles were in every direction in the Alatona region. There were so many machines and so many people you could not tell what there were more of. Some people dared to say that Alatona had become Paradise.
Anyone who was able came here, people said that you can get anything you want in Alatona, so much good had come to this place. People who had moved away came back, people who had been traveling came back, people who had emigrated to other countries came back. In fact, after the MCA-Mali project came, even visitors would say that they grew up here. Who did this work? The big American organization called MCC.
Please bear with me, as I have more to tell. After this work was done, they showed us things that made us glad. They invited us to come get plow oxen and plows. Next, they gave us donkey carts, taught us how to plant rice and gave us money for food while we got training. Thank you MCA-Mali for moving us to our new villages in your vehicles and giving us the reimbursement for moving costs. We received good houses, good bathrooms, clean water, schoolhouses, a meeting hall, storehouses for rice and onions, as well as a drainage system. Thank you, MCA-Mali. Firewood was transported and new trees planted. MCA also built markets in the Alatona region.
Thank you MCA-Mali for achieving something that makes all Malians happy. Everyone you hear talking says, “Wow! It’s really great!” Thank you MCA-Mali for all the money you gave. Thank you MCA-Mali for giving five hectares that a person can live on permanently. Two hectares come with a free land title: one must pay only the water fees, not the price of the land. For three hectares, you must pay for both the land and the water fees. One hectare can be farmed both in rainy season and hot season. Thank you MCA-Mali for giving us lots of three different kinds of fertilizer.
Thank you MCA-Mali for giving gardens to the women, along with fertilizer, seeds, hoes, and picks. Thank you MCA-Mali for giving the men lots of onions, and, on top of that, the money needed for working and sacks for the onions.
When MCA-Mali came, we saw things that astonished us because we are country folk. We are not used to machines that knock down trees. We are not used to machines that dig. We are not used to machines that pick up dirt and load it in a truck. We are not used to machines that enter a pit to swallow dirt and come back out and pour it on the ground. We are not used to machines that crawl like lizards. We are not used to earth-piling machines. We are not used to machines that lift metal. We are not used to machines that plow. We are not used to earth-swallowing machines. We are not used to machines that show the road. We are not used to machines that tell whether work is straight or crooked. We are not used to machines that sort things. We are not used to machines that see what has passed. We are not used to machines that sink into the water to scoop mud and move it onto the dry ground.
Thank you MCA-Mali for helping the poor; this continued to when it was time to start farming. They brought money for plowing. They brought money for planting. They brought money for weeding. They brought money for cutting the rice for harvest. All the things I have listed in this letter. On top of all that, they sent experts to explain how to do the work.
The project began in Welingara, Feto, Beeli, Toule B, Toule A, and Tennde in 2008. In 2010 these six villages were farming. And in 2011 Seekadaayi, Sammbawere, Madiina, Danngeere Kaaje, Tchili Kura, Tchili Koro, Seekadahaara, Daande Salaamu, Wuro Daayi, Wotoro Danga, Wuro Yaladi, Ndukala, Sabere Nooda, Wuro Musa, and Dungel. And in 2012 the villages of Feyi 1, Feyi 2, Feyi 3, Tomoni, Motoni, Nencela, Masabougou, Yirwawere, Marabawere, Baaba Neega, Dangere Baaba, and Ndoojiriwere cultivated rice and it grew very well.
Many people bought large motorcycles. People bought cattle, sheep and goats from Feto to Masabougou (the villages at either end of the project area). Each home you visit you think is better than the one before, because you find contentment and happiness and joy and calm and peace and laughter and people eating food they like and as much as they want. How can we say thanks to MCA-Mali who have done something the likes of which has never been seen in Mali since independence? If we have said such things, it is because we have never before seen any project like MCA-Mali. I, the author of this letter, was born in 1961. If I said these things it is because I myself have seen them; and I too, I say thank you, MCA-Mali. We weren’t getting anything until this great gift came. All of Mali knows this: a project has come to Mali. There is no child, no elder, no woman, no man who did not benefit from this project. That’s in all of Mali. And for us, all we can say is “May God repay you.”
Thank you, MCA-Mali, for keeping your promises.
Thank you, MCA-Mali, for doing good work.
Thank you, MCA-Mali, for this expensive gift.
Thank you, MCA-Mali, for making Malians ID cards free of charge.
Thank you, MCA-Mali, for making land titles free of charge.
I, Aburu Sabu Sangare, wrote this letter. I come from Nenchela and was born in 1961 in the place called Alatona.
Posted on June 14, 2012 by Sheila Herrling, Vice President for Policy and Evaluation
If imitation is the greatest form of flattery, MCC should be very flattered by changes happening in Morocco. CEO Daniel Yohannes and I just finished a visit to Morocco to see progress under MCC's $697.5 million compact in agriculture, artisanal fisheries and artisan development. Throughout our visit, one message rang loud and clear: MCC’s approach is changing the way Morocco does business.
At MCC, we talk a lot about a continuum of results, whereby we track the impact of our investments from policy reform and changed business practices to inputs, outputs and, eventually, outcomes largely measured through income gains for program beneficiaries. While we saw representations of the larger outputs achieved to date, we heard something equally interesting but harder to measure--that the Government of Morocco is applying the MCC model--transparency, accountability, results-focus, and standard-setting--to its own operations. Some quick examples cited by government officials:
• The Minister of Agriculture and Maritime Fisheries described the Morocco Compact’s Fruit Tree Productivity Project as the Government of Morocco’s model for farmer aggregation, one of two key pillars in its own agricultural development strategy or “Green Morocco Plan.” Like MCC, the Government of Morocco has committed to making agriculture an even greater growth engine in the country by focusing on the organization and professional development of farmers as a principal tool.
• The Minister of Finance and Economy applied MCC’s model when recently presenting the Government of Morocco’s first ever citizen-driven budget. In fact, he credited MCC on several occasions for inspiring participative public consultation in the design and implementation of newer Moroccan government programs.
• The Minister of Handicrafts is bringing MCC's high standards on social and environmental impact assessment to bear in broader Government of Morocco investments.
While we won't know the full impact of MCC's investments until some time after the end of the compact, in the meantime, it was gratifying to hear that MCC’s model is fast becoming the model of choice across the Government of Morocco.
Posted on May 29, 2012 by Jolyne Sanjak, Managing Director, Technical Services Division
MCC and a majority of our partner countries believe that improvements to their agricultural and rural sectors are a crucial part of lifting people out of poverty and to improving food security. MCC’s portfolio includes $4.4 billion of investments in improvements to the agricultural and rural sectors that are relevant to reducing food insecurity. This includes a substantial focus on infrastructure investments in large-scale irrigation schemes to ensure reliable access to water and improved yields, as well as roads and post-harvest storage and packaging facilities to move goods to market more efficiently.
MCC projects also invest in direct assistance to farmers with a focus on smallholders. Training activities help farmers learn about cultivating high-value yields, deal with pests and diseases and manage scarce land resources. Rural credit programs are designed to raise incomes by expanding access to credit to help purchase inputs. Land tenure projects work to create secure land rights and efficient institutions for managing land rights.
In seven years, MCC-funded projects have trained nearly 200,000 farmers and assisted more than 3,500 enterprises worldwide. Roughly 170,000 hectares under production receive MCC support through technical assistance, new or rehabilitated irrigation systems or access to agricultural inputs and credit. Land tenure projects have supported legal and regulatory reform in six countries and the formalization of land rights of more than 1 million hectares of rural land, including farmland, grazing areas and forests.
Just last month, our commitment to food security received high praise from the Chicago Council on Global Affairs, an independent, nonpartisan organization. MCC received an “outstanding” evaluation in The 2012 Progress Report on U.S. Leadership in Global Agricultural Development, a thorough study of how the U.S. Government is performing in its commitment to improve food security and support agricultural development in regions with the greatest levels of rural poverty and hunger.
“The Millennium Challenge Corporation has demonstrated outstanding leadership in agricultural development in its role as the largest U.S. Government provider of funding for agriculture and food security infrastructure in Sub-Saharan Africa and South Asia,” the report said. “It has increased its capacity to disburse funds and complete agreements in a timely fashion.”
The report chose Ghana, one of our partner countries, for a case study of U.S. Government development efforts. It labeled the U.S. Government's actions there as “outstanding” and said the MCC compact's “vital work in agriculture has laid a solid foundation for expanded Feed the Future activities.” The MCC compact also supported innovation in applying land tenure law in Ghana by demonstrating an approach to formally recording rural land rights in the context of strong customary practices.
As project results continue to come in, MCC remains committed to learning and being held accountable for how well these program outputs translate into increased incomes and well-being for program beneficiaries. MCC currently has 16 independent impact evaluations underway to address questions such as the impact of our programs on increased productivity, investment in high-value agriculture and business and marketing opportunities. Ultimately, these evaluations are designed to measure and better understand our impact on incomes and poverty reduction. Just as MCC contributed its leadership and technical skill to the State Department and USAID as the Feed the Future Initiative was developed and moved into implementation, we see our rigorous approach to monitoring progress and evaluating impacts as a source of learning for the whole U.S. Government. Learning from our programs can also contribute lessons for donors worldwide.
At MCC, we are proud of our investments and inspired by the changes we are seeing in people’s lives as a result of our compacts. At the same time, we are humbled by the gravity of poverty and the level of food insecurity in our partner countries, fully realizing that true poverty reduction and economic growth are not easy tasks. They will continue to require full attention and support, including using better evidence as we gain it, to improve and promote effective programs.
This recent report is both an endorsement of MCC’s seven years of work in this field and also a reminder of the urgent need for continued investments in agriculture and food security programs around the world.
Posted on May 9, 2012 by Jonathan Brooks, Managing Director for Europe, Asia, Pacific, and Latin America
A community irrigation system created with the help of MCC’s compact with Honduras recently received international recognition—the latest example of how MCC’s investments provide a model for sustainable poverty growth in our partner countries.
The Cosechas de Agua rainwater harvesting project, developed through the compact’s Agricultural Public Goods Grant Facility and managed by CHF International, received the Latin American prize for innovative water management projects in the face of climate change at the World Water Forum in Marseille, France, on March 15.
Cosechas de Agua harvests rainwater for use in irrigation in the arid southern municipalities of Nacaome, Langue, Goascorán, and Aramecina. It captures rainwater and then uses a system of hydraulic works, dams and pipelines to store and distribute the water to fields. The project aims to introduce complementary irrigation systems for 188 agricultural producers over 98 hectares of land, intended to increase their income.
Access to irrigation and other support through the compact was intended to allow farmers to diversify their crops, increase their yields and expand their access to new customers nationally, regionally and internationally.
The $50,000 prize—sponsored by the Mexican national water authority Conagua, the FEMSA Foundation, the Inter-American Development Bank, and the Water Center for Latin America and the Caribbean—will be used to develop the project over the next three years. Cosechas de Agua officials will also be invited to present progress on the system's economic, social and environmental impacts at the next World Water Forum in March 2015.
The Agricultural Public Goods Grant Facility was part of the $68 million Rural Development Project, which sought to increase the productivity and business skills of farmers who operate small- and medium-size farms, as well as their employees. The project is expected to help more than 357,000 people over the next 20 years and raise their household incomes by $53 million.
Posted on April 6, 2012 by Patrick Fine, Vice President for Compact Operations
Nampula Province in central Mozambique is 2,200 kilometers north of the capital Maputo, about the distance from the East Coast to the Mississippi River. The countryside is marked by granite domes that tower hundreds of feet off the lush plains and by isolated mountains that rise up in surreal silhouettes worthy of artist Shane Devries. The land is not heavily populated, and villages are simple collections of traditional thatched-roof rondavels plastered with mud from ubiquitous conical ant hills. Rural electrification has not yet reached most of these villages, roads are simple dirt tracks, most people still fetch water from rivers, and boys stand by the roadside holding out bags of freshly shelled cashews for sale.
You can see signs of growing prosperity, including the results of MCC’s $506 million partnership with Mozambique: Our investment has helped build hundreds of village water points; pave major routes to facilitate agriculture, mining and commerce; and upgrade and expand straining municipal water and sanitation systems.
A year ago, these projects were seriously behind schedule and over budget, causing MCC and the Government of Mozambique to create an action plan to overhaul the approach for completing the work within the five-year deadline. I was impressed by the way Mozambique’s management authority, MCA-Mozambique, had consistently met its implementation milestones since the revised plan was adopted in March 2011.
Last week, with only 18 months remaining in the compact, I visited Nampula to get a firsthand view of what is being accomplished.
I was encouraged by the road and water system construction underway and came away with increased confidence that Mozambique will complete its work on time. In one rural community down a narrow 13 kilometer dirt track, I inaugurated a new borehole and water pump that serves 700 community members and will eliminate the need for women and children to spend up to two hours a day fetching water.
In the town of Nampula, I witnessed the distribution of property titles that give people secure property rights for the first time. The ceremony took place in an open neighborhood square where local officials called out names; the property owners came forward from the large crowd, signed a ledger and took their titles. At the end of the ceremony a number of people started to angrily call out, demanding their titles. The officials explained that the titles would be distributed each day that week. I found this spontaneous demonstration of the demand to have a title a reassuring indication of the value of MCC’s investment.
While my focus was on the MCC-financed projects, what really caught my attention was the extraordinary economic opportunity in Mozambique. Already, Mozambique exports electricity from the largest hydroelectric dam in Africa, and it still has unexploited capacity. A Portuguese contractor working on the MCC road project drove up in a Ford Ranger and had American-manufactured scientific equipment in its materials lab. Recently an American company, Anadarko Petroleum Corporation, announced it had discovered one of the world’s largest reserves of natural gas off the northern coast; the center of the country holds huge deposits of coal, and as more exploration takes place it is very likely that other minerals will be found in commercial quantities. Anadarko has plans to invest approximately $20 billion over the next five years! A Brazilian mining company is already shipping coal and has announced a $6 billion expansion.
I see all sorts of opportunities, from village hardware stores, hair salons and groceries to the suppliers and services that new investments in mining will require. Seen in this light, American investments in basic infrastructure are prescient. And a U.S. company is the supervising engineer on the drainage activity in Nampula city—where one of the main customers and beneficiaries of the new water system is Coca-Cola.
But far more important than market opportunities created by individual MCC-financed projects are the market opportunities that will open up for U.S. goods and services if Mozambique’s economy takes off. Road-building and mining equipment, chemicals and a spectrum of products and services will be needed to build this economy. Now is the time for U.S. companies to invest in establishing a presence in the country so that they can be competitive.
The government is implementing business-friendly reforms—such as the MCC financed land reform program—and there is a still-untapped entrepreneurial spirit among the youth. Mozambique’s economy has already been growing at nearly 8 percent per year over the past several years and is on the verge of an economic era that could transform its villages and create prosperity and opportunities not only for one of the world’s poorest populations but for the companies and individuals intrepid enough to join an economy just taking off.
I left Mozambique with the impression that almost everything is in place for it to become the next big growth economy in Africa.
Posted on February 15, 2012 by Daniel W. Yohannes, Chief Executive Officer
I just witnessed an incredible celebration here in Ghana: thousands of people rejoicing at the opening of the long-awaited N1 highway—renamed the George Walker Bush Motorway—which links the capital, Accra, with major ports, the international airport and the country’s major agricultural regions. This has been a Ghanaian dream since 1965, and it’s finally coming true.
As I drove down the road, thousands of people that live along the road greeted us. School children celebrated. People stood on banisters to catch a better glimpse of the celebration, and crowds waved from their nearby apartments.
There was dancing and chanting. The American and Ghanaian flags swayed together. A nearby large banner read, “Thank you, America.” The celebration resonated deeply with me.
MCC helped improve a 14-kilometer stretch of the highway as part of its five-year, $547 million compact. It runs through the heart of the capital city and for decades has been clogged with people and traffic. The need to widen the highway has been in the planning 40 years, but it only became a reality thanks to the Ghana and MCC partnership. It’s not hard to see why people were so excited.
The highway project was Ghana’s largest public works project in decades, and workers labored until the final minutes of compact closeout to ensure project completion. As President John Atta Mills told the crowd, “This is not President Kufuor's compact. This is not my compact. It’s Ghana's compact.”
During closeout speeches, the chief executive officer of Ghana’s MiDA, the entity in charge of implementing Ghana’s MCC compact, said it best: “MCC is the spearhead for development.” In Ghana, we certainly are spearheading a true partnership based on goodwill, trust and collaboration.
The opening of the N1 highway is a major event in Ghana’s development and a highly visible reminder of MCC’s partnership. It’s a milestone that transcends political parties, both in the U.S. and Ghana. And most importantly, it’s a reason all Ghanaians have to celebrate.
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