"The Mozambique Coastal Connectivity and Resilience Compact is an ambitious and innovative attempt to address the multifaceted risks of climate change for MCC Compact investments. Unique to the pact's design is the focus on climate-resilient infrastructure, climate finance and coastal development, which aims to strengthen local economies dependent on agriculture and fisheries, but limited by connectivity and reliable access," reads the same report.

He adds that this funding compact will feature "three interrelated projects that meet all of MCC's comprehensive investment criteria", promoting "strong social, gender and youth inclusion", as well as leveraging private investment.

On June 28, the board of directors of the Millennium Challenge Corporation (MCC, the US foreign support agency) approved a new funding compact of 500 million dollars for Mozambique's Coastal Connectivity and Resilience Pact.

The approval follows the memorandum signed with the government in January and "reaffirms the MCC's commitment to directly addressing the constraints to economic growth through innovative solutions," the organization announced at the time.

The program will focus on development in the central province of Zambézia.

"In Mozambique, we are implementing the MCC's climate pact, a combination of resilient transport infrastructure, green economy opportunities, blue economy and political and institutional reforms to enable more effective and long-term growth," the agency said.

This is MCC's second pact with Mozambique, after another worth 506.9 million dollars, concluded in 2013, which focused on water supply and sanitation, land ownership issues, transportation and agriculture.

This time, the focus is on improving transportation networks in rural areas, encouraging commercial agriculture through political and fiscal reforms and improving coastal livelihoods through climate resilience initiatives.

The MCC is a US government-funded agency that provides grants to developing countries for a fixed period of time. (RTP/Lusa)