The Government of Mozambique and the Millennium Challenge Corporation (MCC) signed this Wednesday, April 20, in Washington D.C., USA, a Revised Compact Development Fund (CDF) Agreement to strengthen the capacity of the Office of Compact Development II (GDC-II) to identify and design the projects that will be part of the second compact program (Compact II) for Mozambique.

With this signing of the Revised CDF Agreement, a total of 10.75 million dollars will be allocated to the ongoing Compact II preparation process, which is expected to benefit the entire country, but with a geographical focus on Zambezia province.

On the occasion the Minister of Economy and Finance, Max Tonela, said that the signing represents an important commitment towards the qualitative design of Compact II, which will be integrated by projects in the areas of Investment Promotion in Commercial Agriculture; Rural Connectivity and Transportation; and Integrated Climate Management and Coastal Development, the three areas to be covered by Compact II.

"I would like to reiterate the government of Mozambique's commitment to strengthening the capacity of our institutions to implement sound economic policies and fiscal reforms that will improve the foundation of Mozambique's social and economic development," said Minister Max Tonela.

Around her turn, MCC's Vice President for Compact Operations, Fatema Z. Sumar, said that "we are pleased to take the next step in our partnership with the government of Mozambique. The signing of the Revised Compact Development Fund Agreement will continue to mark progress toward a successful MCC - Mozambique Compact."

Sumar added that "with the funding that will be made available, the MCC and the government of Mozambique will work to identify investment projects to reduce poverty and accelerate inclusive and sustainable economic growth and private sector investment."

The Compact II agreement is expected to be signed in July 2023, lasting five years. From 2008 to 2013, Mozambique benefited from the first Compact program (Compact I) on a budget of $509 million.