WASHINGTON D.C. – The U.S. Government’s Millennium Challenge Corporation (MCC) today signed a five-year, $66.2 million compact with the Government of Cape Verde to reduce poverty through economic growth. MCC Chief Executive Officer Daniel Yohannes and Prime Minister José Maria Neves participated in the signing ceremony, which took place in Praia, the capital of Cape Verde.
The compact is designed to increase Cape Verdeans’ household incomes by reforming and strengthening the water, sanitation and land management sectors. This new MCC compact builds on the success of Cape Verde’s first compact, which was completed in October 2010, and upholds high standards for accountability, transparency and achieving results.
“Cape Verde, a model for democracy and stability in Africa, has demonstrated an ongoing commitment to building a self-sustaining, high-growth economy through policy and institutional reforms, infrastructure development and private sector engagement,” stated Mr. Yohannes.
Cape Verde is an extremely water-scarce country, and faces a number of challenges in the water and sanitation sector. The Water, Sanitation, and Hygiene Project (WASH) will use a three-prong strategy designed to improve sector performance: 1) reform national policy and regulatory institutions; 2) transform inefficient utilities into independent, high-performing organizations that operate on a commercial basis; and 3) improve the quality and reach of water and sanitation infrastructure.
The Land Management for Investment Project is designed to help create a single, reliable and easily accessible source of information on land rights and land boundaries. The project is expected to strengthen Cape Verde's investment climate -- for both large and small investors -- and reduce land registration time and costs. The project will also support legal, institutional and system reform at the national level, and clarify parcel rights and boundaries in areas with high potential for private sector investment.
These institutional reform and investment projects will support Cape Verde’s ambitious economic development agenda, focused on moving from a reliance on foreign aid and remittances to mobilization of private sector investment and improved domestic resource management.
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The Millennium Challenge Corporation (MCC) is an innovative and independent U.S. Government foreign aid agency that is helping lead the fight against global poverty through the promotion of sustainable economic growth. MCC is based on the principle that aid is most effective when it reinforces good governance, economic freedom and investments in people. To learn more about MCC please visit www.mcc.gov