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United States and Mozambique Agree on Key Components of Mozambique Compact
January 30, 2023




United States and Mozambique Agree on Key Components of Mozambique Compact


January 30, 2023 – Visiting U.S. Millennium Challenge Corporation (MCC) Deputy Chief Executive Officer (DCEO) Mahmoud Bah and Minister of Economy and Finance Max Tonela signed a key agreement called an Aide Memoire during a meeting at the Ministry of Economy and Finance today.  This non-binding document details the two governments’ agreement on the scope and objectives of MCC’s compact with Mozambique.  DCEO Bah and Minister Tonela were accompanied by U.S. Ambassador to Mozambique Peter H. Vrooman and Mozambique’s National Coordinator for Compact II Higino de Marrule.  MCC and the Mozambican Government expect to sign the proposed compact in 2023.

The Government of the Republic of Mozambique developed the goals and reforms documented in the Aide Memoire, reflecting its leadership in identifying priorities and designing the activities of the compact.  The priorities include 1) Connectivity and rural transport, 2) Promotion of investment in commercial agriculture, and 3) Integrated climate management and coastal development.  While the development projects will be implemented in Zambézia province, key reforms of the compact will entail nationwide reforms focused on improving road maintenance and the business environment.  Under the Aide Memoire, the Government of Mozambique has committed to increase its allocation of funding to Mozambique’s road maintenance system under the Administração Nacional de Estradas and Fundo de Estradas by 50 percent, or USD $37.5 million.

The Millennium Challenge Corporation is an independent U.S. government agency working to reduce global poverty through economic growth. Created in 2004, MCC provides time-limited grants and assistance to countries that meet rigorous standards for good governance, fighting corruption and respecting democratic rights. For more information on business, partnership, or job opportunities, please visit: https://www.mcc.gov/work-with-us.

The MCC compact is a critical component of broader U.S. Government assistance in Mozambique.  In close collaboration with the Government of Mozambique, the U.S. Government provides more than USD $500 million in annual assistance to improve the quality of education and healthcare, promote economic prosperity, and support the overall development of the nation.