Mozambican President to sign US$500 million agreement in Washington

The Government of Mozambique signs this Thursday at the Capitol in Washington with the Millennium Challenge Corporation (MCC) a second financing agreement worth 500 million dollars in the presence of the head of state, Filipe Nyusi.

According to MCC, the signing ceremony for Mozambique’s Coastal Connectivity and Resilience Pact is scheduled for 10:00 a.m. local time (3:00 p.m. Lisbon time), and will also be attended by the president of the U.S. government’s external support agency. ), Alice Albright and Mozambican Minister of Economy and Finance Ernesto Max Tonela.

“The Mozambique Coastal Connectivity and Resilience Pact is an ambitious and innovative attempt to address the multifaceted risks of climate change to investments in the MCC Agreement. “A unique feature of the pact is its emphasis on climate-resilient infrastructure, climate finance and coastal development, which aims to strengthen local economies that rely on agriculture and fisheries but are limited by connectivity and reliable access,” the agency previously explained.

This financing agreement will feature “three interconnected projects that meet all of MCC’s comprehensive investment criteria” promoting “strong social, gender and youth inclusion” as well as attracting private investment.

The board of directors of the Millennium Challenge Corporation (MCC, the North American external support agency) approved on June 28 a new funding agreement of $500 million (€465.7 million) for the Mozambique Coastal Connectivity and Resilience Pact.

The approval follows a memorandum signed with the government in January and “reaffirms MCC’s commitment to directly addressing constraints to economic growth through innovative solutions,” the organization said at the time.

The program will focus on the development of the province of Zambezia, located in the center of the country.

“In Mozambique, we are implementing the MCC’s most climate pact, combining sustainable transport infrastructure, green economy opportunities, blue economy, and policy and institutional reforms to ensure more efficient and long-term growth,” the agency said.

This is MCC’s second pact with Mozambique, following another worth $506.9 million (€472.9 million) in 2013 covering water supply and sanitation, property, land, transport and agriculture.

This time the focus is on improving transportation networks in rural areas, encouraging commercial agriculture through policy and tax reforms, and improving living conditions in coastal areas through climate change adaptation initiatives.

MCC is an agency funded by the United States government that provides period-specific grants to developing countries.