MCC Board of Directors Approves Poverty Reduction Grants for Lesotho and Mozambique

The five-year $362.6 million grant to Lesotho seeks to increase water supplies for industrial and domestic use, to mitigate the devastating affects of poor maternal health, HIV/AIDS, tuberculosis and other diseases by substantially strengthening the country’s health care infrastructure and human resources for health capacity, and to remove barriers to foreign and local private sector investment. By 2013, the Compact will benefit the majority of the population of 1.8 million due to its broad geographic scope and focus on sectors that impact most Basotho such as health and the provision of potable water.

Mozambique’s five-year $506.9 million Millennium Challenge Compact aims to reduce poverty levels through increased incomes and employment by improving water, sanitation, roads, land tenure, and agriculture. This program is expected to benefit approximately five million Mozambicans by 2015.

“MCC congratulates Lesotho and Mozambique for developing comprehensive, unique programs to reduce poverty and spur economic growth,” said MCC CEO Ambassador John Danilovich. “Both agreements are testaments to each nation’s strong commitment to good governance and building the necessary institutional framework for aid to be used effectively. MCC is proud to partner with both countries to fight poverty and build a better life for themselves and their children.”

Following MCC Board approval, there is a fifteen day Congressional notification period before either Compact can be signed. MCC anticipates signing both Compacts in July.

Since its inception in 2004, MCC has signed Compacts totaling $3 billion with eleven partner countries: Madagascar, Cape Verde, Honduras, Nicaragua, Georgia, Armenia, Vanuatu, Benin, Ghana, Mali, and El Salvador. MCC was established with a vision to combat extreme poverty by encouraging countries to take ownership of their own development path.

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