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Press Release

U.S., Mozambique Sign $537M Connectivity and Coastal Resilience Compact

For Immediate Release

September 21, 2023

WASHINGTON (September 21, 2023) –Millennium Challenge Corporation (MCC) Chief Executive Officer (CEO) Alice Albright joined President Filipe Nyusi and Minister of Economy and Finance Ernesto Max Tonela for the signing of the Mozambique Connectivity and Coastal Resilience Compact today during a ceremony on Capitol Hill in Washington, D.C.

With $500 million from MCC and $37.5 million from the Government of Mozambique, the 5-year partnership will build roads and infrastructure in Zambezia Province, including a 1.1-mile bridge spanning the Licungo River, maintaining a critical economic lifeline between the north and the south of the country. The compact will also protect Mozambique’s coastline from the effects of climate change and over-fishing and pursue reforms in the agriculture sector.

“This ambitious and innovative new compact program will bring MCC’s total investment in Mozambique to over one billion,” said MCC CEO Alice Albright. “In 2008, we partnered to rehabilitate roads, build water and sanitation systems, improve crop yields and secure land tenure. This compact will build on these prior successes and invest in some of Mozambique’s biggest priorities, unlocking the country’s vast economic potential, and helping Mozambicans gain access to opportunities they deserve.”

The new Connectivity and Coastal Resilience Compact is expected to improve the lives of 57 million people in Mozambique, through sustainable and inclusive economic growth. Funds will be managed by the Millennium Challenge Account (MCA) Mozambique office, comprised of Mozambique government, civil society, and private sector representatives.

“In regard to this historic funding, it is our duty to ensure accountability and adherence to good practices in the management of the involved public goods, thus consolidating trust and good moment of the relationship between Mozambique and the United States of America. Therefore, we will keep up the standards in respecting the sacrifice of the taxpayers of both countries,” said President of Mozambique President Filipe Nyusi.

The Mozambique Connectivity and Coastal Resilience Compact consists of three projects:

  • The Connectivity and Rural Transport Project (CTR) will enhance the quality and climate resilience of major routes in Zambezia by improving roads and bridges and addressing deferred maintenance, including the busy Mocuba Bridge.
  • The Promoting Reform and Investment in Agriculture Project (PRIA) will improve the incomes of smallholder farmers and other value chain actors, increase investments in the agriculture sector, and foster agriculture-related fiscal reform and incentives.
  • The Coastal Livelihoods and Climate Resilience Project (CLCR) seeks to increase ecosystem productivity by addressing problems caused by long-term ecosystem degradation and fishery loss.
The Millennium Challenge Corporation is an independent U.S. government agency working to reduce global poverty through economic growth. Created in 2004, MCC provides time-limited grants and assistance to countries that meet rigorous standards for good governance, fighting corruption and respecting democratic rights.