In Washington, the Deputy Minister of Economy and Finance, Amílcar Tivane, and the Millennium Challenge Corporation (MCC) of the United States signed a financing agreement for the second Compact in Mozambique. The total amount is USD 537.5 million, with USD 500 million coming from a US donation. Compact II will focus on crucial projects in the areas of agriculture, connectivity, rural transportation, and climate resilience, with the province of Zambézia.
In the US capital, Washington, representatives of the Mozambican government and the Millennium Challenge Corporation (MCC) formalized the financing agreement for the second Compact, called Compact II, totalling a hefty investment of USD 537.5 million. Of this amount, USD 500 million is a generous donation from the US government, channeled through MCC, while the remaining USD 37.5 million represents Mozambique’s contribution.
The Deputy Minister of Economy and Finance, Amílcar Tivane, highlighted the importance of the act, underlining the commitment to principles of transparency in promoting access to information. Compact II will focus on three crucial areas: Promoting Investment in Commercial Agriculture, Connectivity and Rural Transport, and Livelihoods and Climate Resilience, with Zambezia province at the center of attention.
Tivane assured that the Millennium Challenge Account-Mozambique (MCA-Mozambique), in charge of implementing Compact II, will be guided by the principles of transparency and inclusion. The Board of Directors of MCA-Mozambique will include six Ministers, representatives of civil society, the private sector and the Governor of Zambezia Province, all with voting rights.
Unlike Compact I, whose projects began immediately after the signing of the financing agreement in 2008, Compact II will have a period of 18 to 24 months for preparation. Government representative Tonela emphasized the importance of this preparatory phase, citing lessons from the past. The five-year clock for Compact II will only start ticking once the preparatory work has been completed, which includes geological and hydraulic studies and the resettlement of impacted communities.
At the ceremony, the President of the Republic, Filipe Nyusi, highlighted the program’s emphasis on climate change, coastal development and innovations in agriculture. Alice Albright, executive director of the MCC, celebrated the milestone, pointing out that Compact II will boost commercial agriculture, tax reforms and promote the inclusion of small producers in the formal market, targeting investments towards women and young people.
The signing of Compact II marks a new chapter in cooperation between Mozambique and the United States, boosting projects that will positively impact the lives of Mozambicans.
