Aide Memoire Signed With Millennium CHallenge Corporation
Maputo, 30 Jan (AIM) – The Mozambican Minister of Economy and Finance, Max Tonela, and the Deputy Chief Executive Office of the United States Millennium Challenge Corporation (MCC), Mahmoud Bah, on Monday signed an Aide Memoire in Maputo.
This document, according to a press release from the US Embassy, details the agreement between the two governments on the scope and objectives of the MCC’s forthcoming compact with Mozambique.
The priorities to be covered by the compact, said the release, “include connectivity and rural transport, promotion of investment in commercial agriculture, and integrated climate management and coastal development”.
The development projects will be implemented in the central province of Zambezia, but “key reforms under the compact will entail nationwide reforms focused on improving road maintenance and the business environment.”.
Under the Aide Memoire, the Government has committed to increase its allocation of funding to the Mozambican road maintenance system by 50 percent, which is a further 37.5 million US dollars.
The Millennium Challenge Corporation is described as “an independent U.S. government agency working to reduce global poverty through economic growth”.
It provides grants and assistance, for a specific period, to countries that meet rigorous standards for good governance, fighting corruption and respecting democratic rights. The Embassy release described the MCC compact as “a critical component of broader U.S. Government assistance in Mozambique”.
This will be the second compact between the MCC and Mozambique. The first MCC compact, valued at 509 million dollars, ran from 2008 to 2013. It is expected that the second compact will be signed later this year and will cover a five year period.
The amount of funding for the second compact is not yet clear, but previous experience suggests it could be between 350 and 500 million dollars.
(AIM)
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