WASHINGTON (June 28, 2023) – Today the Millennium Challenge Corporation’s (MCC) Board of Directors approved a $500 million program for the Mozambique Connectivity and Coastal Resilience Compact and a $29.1 million grant for the Kiribati Threshold Program— investments designed to promote economic opportunities and to reduce global poverty.
“The Board’s approval of the Kiribati and Mozambique programs reaffirms MCC’s commitment to directly tackle economic growth constraints through innovative solutions. Utilizing a new model in Kiribati, MCC will work with two experienced implementation partners with a proven track record to leverage funds more efficiently while maintaining our high-quality standards,” said MCC’s Chief Executive Officer Alice Albright. “In Mozambique, we’re implementing MCC’s most climate-forward compact- a combination of resilient transport infrastructure, green and blue economy opportunities, and policy and institutional reforms to enable more effective and long-term growth.”
This is MCC’s second compact with the Government of Mozambique. Through this program, MCC seeks to improve transport connectivity in rural areas, incentivize commercial agricultural through policy and fiscal reforms, and improve coastal livelihoods through climate resilience initiatives. The previous $506.9 million Mozambique Compact, concluded in 2013, invested in water and sanitation, land tenure, transportation, and agriculture.
The Board selected Kiribati for partnership in 2020. The Kiribati Threshold Program, approved Wednesday, is MCC’s first partnership with the Pacific Island nation. MCC and the Government of Kiribati aim to promote inclusive employment opportunities by building the capability of the Ministry of Employment and Human Resources; improving workers’ rights and well-being before, during, and after overseas employment; and investing in youth skills camps and academic scholarships.
During Wednesday’s meeting, the Board also received an update on MCC’s global portfolio and learned about the upcoming campaign launch to celebrate MCC’s 20th anniversary.
The Millennium Challenge Corporation is an independent U.S. government development agency working to reduce global poverty through economic growth. Created in 2004, MCC provides time-limited grants that pair investments in infrastructure with policy and institutional reforms to countries that meet rigorous standards for good governance, fighting corruption and respecting democratic rights.