Mozambique: $10M Compact Development Funding (CDF) Agreement signed with Millenium Challenge Corporation – AIM report

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Mozambique: $10M Compact Development Funding (CDF) Agreement signed with Millenium Challenge Corporation – AIM report

8:49 CAT | 22 Apr 2022

Photo: Millennium Challenge Corporation - MCC

Wednesday’s $10M Compact Development Funding Agreement seeks to strengthen the capacity of Mozambique’s Compact II Development Office (GDC-II) in identifying and designing the projects that will form part of the Compact.

The Mozambican government and the US Millennium Challenge Corporation (MCC) on Wednesday signed in Washington a revised agreement on the Compact Development Fund (CDF).

The packages of aid provided by the MCC are known as “compacts”. Wednesday’s agreement seeks to strengthen the capacity of the Compact II Development Office (GDC-II) in identifying and designing the projects that will form part of the Compact.

With the signature of the revised CDF agreement, according to a release from the Mozambican Ministry of Economy and Finance, 10.75 million dollars will be allocated to the preparation of Compact II, which is expected to benefit the entire country, but with a geographical emphasis on the central province of Zambezia.

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The Minister of Economy and Finance, Max Tonela, who signed the agreement, said his signature represents an important commitment leading towards the qualitative design of Compact II. He said the compact will contain projects in areas such as the promotion of investments in commercial agriculture; rural connectivity and transport; and the integrated management of climate and coastal development. These are the three key areas to be covered by the compact

Tonela.mcc_.fb_ — *Photo: Millennium Challenge Corporation – MCC on Facebook*

“I would like to reiterate the commitment of the Mozambican government to strengthen the capacity of our institutions to implement solid economic policies and fiscal reforms, which will improve the cornerstones of the social and economic development of Mozambique”, said Tonela

For her part, the MCC Deputy President for Compact Operations, Fatema Z. Sumar, said “We are pleased to take the next step in our partnership with the Mozambican government”.

“The signing of the Revised Agreement on the Compact Development Fund will continue to mark progress towards a successful MCC Mozambique Compact”, she said. “With the funding that will be made available, the MCC and the Mozambican government will work to identify investment projects to reduce poverty and to speed up inclusive and sustainable economic growth”.

It is expected that Compact II will be signed in 2023. The first MCC compact, valued at 509 million dollars, ran from 2008 to 2013.

Source: AIM