Washington, D.C. - The Millennium Challenge Corporation (MCC) today announced a $70 million commitment to support public-private partnerships in partner countries that is expected to bring $1 billion in private-sector investments over the next five years. Announced during President Obama's trip to Africa, the new Public-Private Partnership (P3) Platform will unlock investment and growth opportunities for U.S. companies in MCC's partner countries, and catalyze critical financing that will advance MCC's mission of reducing global poverty.
Development needs in Africa and around the world will not be met by foreign assistance alone. At the Conference on Financing for Development earlier this month, there was widespread recognition that official development assistance must increasingly catalyze other resources to finance development. Of MCC's $70 million commitment, $52 million in MCC grants will go to Africa and is expected to generate $750 million in investments in Africa from the private sector.
"MCC is committed to bringing the private sector to Africa and developing countries around the world," MCC CEO Dana J. Hyde said. "This new platform will accelerate economic growth and the fight against poverty in our partner countries and open the door of opportunity to more American businesses."
Leveraging MCC's focus on policy and institutional reforms, the new platform will help MCC partner countries create the conditions for private-sector investment, and prepare solicited public-private partnership deals. MCC partner countries will prepare bankable projects and select investors through an open, competitive selection process.
A lack of funding and expertise often prevents governments in developing countries from entering into partnerships with private companies. The P3 Platform will help bridge that gap by making a comprehensive, coordinated package of tools and resources available from U.S. Government agencies, including the U.S. Trade and Development Agency (USTDA), U.S. Agency for International Development (USAID), Overseas Private Investment Corporation (OPIC), U.S. Department of State, U.S. Department of Commerce, U.S. Department of Agriculture (USDA), and U.S. Department of Energy.
MCC provides targeted grants designed to create measurable economic growth opportunities and incentivize better governance and open markets. This approach makes development assistance more effective, improves the lives of the world's poor, and opens new markets for business.
Learn more about the P3 Platform here.
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The Millennium Challenge Corporation, a U.S. Government agency designed to work with some of the poorest countries in the world, is based on the principle that aid is most effective when it reinforces good governance, economic freedom and investments in people that promote economic growth and elimination of extreme poverty. Learn more about MCC at www.mcc.gov.