The US foreign support agency Millennium Challenge Corporation (MCC) plans to sign a financing package for Mozambique this year in the order of 500 million dollars, one of its leaders announced today..

"We estimate 500 million dollars for the investment package, one linked to transportation and connectivity, a second project on climate change management and a third on commercial agriculture," said Mahmoud Bah, deputy executive director of the Millennium Challenge Corporation (MCC).

The statements were made at the end of a meeting with Max Tonela, Minister of Economy and Finance, during a visit by the MCC leader to Mozambique.

Both signed a memorandum on the scope and objectives of MCC's new compact (the name given to the financing program) with Mozambique.

The work comes after the MCC announced in April 2022 a sum of 10 million dollars to prepare the program.

Although the development projects "will be implemented in Zambézia province," in the center of the country, "the fundamental reforms of the compact will involve improvements at the national level focused on road maintenance and the business environment," the US embassy said in a statement, quoting the memorandum.

As an example, "the Mozambican government has pledged to increase funding for the country's road maintenance system by 50%, or 37.5 million dollars," he added.

Mozambique has already benefited from a first MCC funding program, completed in 2013, during which the country received $507 million.

The MCC is a US government-funded agency that provides grants to developing countries.