Newsletter Subscription

The government of Mozambique has signed a compact with the US’ Millennium Challenge Corporation (MCC) that will see nearly US$540 million invested in roads and other infrastructure in the Zambezia Province over the next five years to build resilience against climate change and improve connectivity.

President Filipe Nyusi and Minister of Economy & Finance Ernesto Max Tonela signed the Mozambique Connectivity and Coastal Resilience Compact with MCC chief executive officer Alice Albright in Washington on 21 September.

With US$500 million from the MCC and US$37.5 million contributed by the government of Mozambique, the five-year partnership will support the construction of roads and infrastructure in Zambezia Province, including a 1.1-mile bridge spanning the Licungo River.

The compact will also seek to protect Mozambique’s coastline from the effects of climate change and overfishing and pursue reforms in the agriculture sector to promote inclusive economic growth.

Zambezia is the country's second-most populous province.

“This ambitious and innovative new compact programme will bring MCC’s total investment in Mozambique to over US$1 billion,” said Albright. “In 2008, we partnered to rehabilitate roads, build water and sanitation systems, improve crop yields and secure land tenure. This compact will build on these prior successes and invest in some of Mozambique’s biggest priorities, unlocking the country’s vast economic potential, and helping Mozambicans gain access to opportunities they deserve.” 

The Mozambique Connectivity and Coastal Resilience Compact consists of three projects: 

• The Connectivity and Rural Transport Project (CTR) will enhance the quality and climate resilience of major routes in Zambezia by improving roads and bridges and addressing deferred maintenance, including the Mocuba Bridge. 
• The Promoting Reform and Investment in Agriculture Project (PRIA) will improve the incomes of smallholder farmers and other value-chain actors, increase investments in the agriculture sector, and foster agriculture-related fiscal reform and incentives.
• The Coastal Livelihoods and Climate Resilience Project (CLCR) seeks to increase ecosystem productivity by addressing problems caused by long-term ecosystem degradation and fishery loss.

Earlier this year, Cyclone Freddy swept through Mozambique causing severe damage to infrastructure and transport networks and leaving more than 640,000 people homeless. Some two-thirds of the country's population live in low-lying coastal areas. 

The MCC is an independent US government agency created in 2004 that works to reduce global poverty through economic growth by providing grants and other forms of assistance.

Photo: Compact signing (Source: MCC)