The board of directors of the Millennium Challenge Corporation (MCC), a United States foreign aid agency, today approved a 500 million dollar (458 million euro) programme for the Mozambique Connectivity and Coastal Resilience Compact.
This approval follows the agreement signed with the Mozambican Government in January and reaffirms the MCC's commitment to tackling constraints to economic growth head-on through innovative solutions, the organisation said in a statement.
The programme will focus on the development of Zambézia province, in the centre of the country.
In Mozambique's case, the MCC will implement its most climate-focused compact, which combines resilient transport infrastructure, green economy and blue economy opportunities, and political and institutional reforms to promote effective and sustainable long-term growth, the agency explained.
This is the second compact between the MCC and Mozambique; the first, worth 506.9 million dollars (464 million euros), was completed in 2013 and was aimed at water supply and sanitation, land ownership issues, transport and agriculture.
This time, the focus will be on improving transport networks in rural areas, stimulating commercial agriculture through policy and fiscal reforms, and improving coastal livelihoods through climate resilience initiatives.
The Millennium Challenge Corporation (MCC) is an agency funded by the Government of the United States of America that awards time-limited grants to developing countries.
