The Millennium Challenge Corporation (MCC) and the Government of Mozambique signed a five-year, $506.9 million compact in July 2007, designed to increase the country’s economic growth and reduce poverty by investing in four project areas: water and sanitation, roads, land tenure, and agriculture.
The government and MCC jointly identified and selected these project areas based on:
- Efforts to fund activities that would help attract private investment and increase economic growth to reduce poverty;
- Input from businesses and civil society; and
- Lessons from previous government development strategies.
The compact focused on Mozambique’s northern provinces, home to half the country’s population but where the economy has lagged compared to the southern provinces.
At the end of the compact in September 2013, the Government of Mozambique and MCC had spent 90 percent of the anticipated compact funds to:
- Help farmers improve coconut crop management and yields;
- Formalize land titles;
- Rehabilitate roads used for commercial traffic; and
- Help upgrade water and sanitation systems.
The Government of Mozambique and MCC expect more than two and a half million people to benefit from the investments. Further details of the compact’s results and impacts can be found in its impact and performance evaluations.