Maputo, Mozambique, January 27, 2020 – A delegation from the U.S. Government’s Millennium Challenge Corporation (MCC) led by Chief Executive Officer Sean Cairncross visited Mozambique to discuss the development of a new compact program to reduce poverty and create economic growth. Mozambique was unanimously selected by MCC’s Board of Directors as eligible to develop an MCC compact program in December 2019.
During the visit, the U.S. delegation met with senior officials in the Government of the Republic of Mozambique, including President Filipe Nyusi, private sector leaders, and partners in the donor community, to discuss MCC’s approach to fighting poverty through economic growth and next steps in the MCC compact program development process.
“The selection of Mozambique for compact program development recognizes the Mozambican government’s commitment to strengthening democratic institutions, maintaining sound economic policies and political reforms, and investing in its people,” CEO Sean Cairncross said. “This visit marks the start of a new phase of the partnership between Mozambique and the United States, through the Millennium Challenge Corporation. I am excited for the results we will achieve together benefitting Mozambique’s citizens, businesses, and economy.”
“The United States is committed to working with our partners in the Mozambican government to enhance prosperity and encourage good governance for the benefit of all the citizens of this great nation. We look forward to getting started on the compact development process,” said U.S. Ambassador to Mozambique Dennis W. Hearne.
Using a country-led approach, MCC provides time-limited grants and assistance to developing countries that meet rigorous standards for good governance, from fighting corruption to respecting democratic rights. Working with local partners, MCC tackles some of the most challenging economic constraints that developing nations face, like access to electricity, clean water, land rights, and road infrastructure.
During the compact development process, MCC and the Government of the Republic of Mozambique will jointly conduct a rigorous analysis—called a “Constraints to Economic Growth Analysis”— to determine the most significant factors constraining economic growth in the country. That analysis will inform the development of MCC projects under the compact, with the specific sectors to be determined. Program development typically takes two to three years and involves analysis, program design, and project planning before a grant agreement can be signed. Development of the program also includes a consultative process, engaging civil society and the private sector in Mozambique.
MCC’s first compact in Mozambique closed in September 2013. Not all of MCC’s partner countries receive subsequent compacts. As a result, MCC has greater expectations of subsequent compact partners, including a stronger emphasis on policy and institutional reform, leveraging private sector investment and partnerships, and a minimum country contribution to the final compact amount.
Learn more about MCC at www.mcc.gov.