MCC Partner Countries That Completed Compacts in Fiscal Year 2023
Since its founding, MCC and its partner countries have completed 32 compacts, totaling more than $10.4 billion in total expenditures (Table 1). Benin and Morocco completed compacts with MCC in FY 2023.
Benin
The Benin Power Compact ended on June 22, 2023. The compact tripled the capacity of Benin’s power grid, as measured by high- and medium-voltage transformer capacity. Major new grid capacity, reliability and flexibility were achieved through the construction or rehabilitation of 19 substations and 898 kilometers of power lines nationwide. The compact supported the construction of Benin’s first national electricity dispatch center, which provides round-the-clock grid data acquisition, supervision and control. Additionally, through the compact, Benin developed a pioneering policy and institutional framework for off-grid electrification that has attracted private sector investment in renewable off-grid electric power systems in areas without access to electricity. These private investments, with grant support from MCC, delivered electric power to an estimated 200,000 people, many for the first time. Partnered with the construction of energy infrastructure, the electric power sector reforms spurred by the compact included an electricity tariff increase of 15 percent, which has greatly improved the balance sheet of the national power company, and Benin’s first-ever framework for independent power producers. Finally, the compact assisted women entrepreneurs to improve their business operations and use of energy, while audits of 30 major industrial and government power consumers—and enforcement of performance standards for lightbulbs and refrigerators—helped advance energy efficiency efforts across Benin. Over the next 20 years, MCC expects more than 11 million Beninese will benefit from MCC’s compact investments.
Morocco
The Morocco Employability and Land Compact ended on March 31, 2023. The compact addressed key constraints to Morocco’s economic growth: the quality of education and land productivity. In partnership with the Government, MCC compact funds supported the Education and Training for Employability Project to improve the quality and relevance of secondary education and technical and vocational training for Moroccan youth. This project, in partnership with local communities and with the private sector, piloted significant policy reforms to ensure sustainability of investments and an environment where students could more easily move from the educational system to the job market. The compact funded the construction and rehabilitation of 15 technical and vocational training centers across Morocco, with construction completed on 14 of these centers by the conclusion of the compact. The Government of Morocco completed the final training center in summer 2023. The compact also funded rehabilitation of 89 secondary schools across three regions and worked with these schools to improve their budgeting and pedagogy practices to ensure sustainability. The second constraint to economic growth, land productivity, involves both land use and ownership. The Land Productivity Project was designed to increase land productivity through enabling land markets to better respond to investor demand; the project strengthened the enabling environment for investors to purchase, transfer and develop land for multiple uses, including industrial land, collectively owned land, and clear title and transfer of land. The compact also helped the Moroccan government to deliver land ownership rights via a faster and more inclusive process, with land titles established for over 95 percent of the 56,000 hectares covered by the project. The land title reform also included transformational advances to secure land rights for women and indigenous groups. In addition, MCA-Morocco and the Government of Morocco signed two public-private partnership (PPP) agreements for new industrial zones—which represent the first-ever industrial zones under a PPP model in Morocco—and funded nine industrial zone projects across the country through the Fund for Sustainable Industrial Zones, which is now being replicated by the Moroccan Ministry of Industry.
| Partner Country | Date Compact Signed | Compact Obligations as of September 30, 2023 (in millions of dollars) |
|---|---|---|
| Madagascar | April 18, 2005 | $85.6 |
| Honduras | June 14, 2005 | $204.0 |
| Cabo Verde | July 5, 2005 | $108.5 |
| Nicaragua | July 15, 2005 | $112.7 |
| Georgia | September 12, 2005 | $387.2 |
| Benin | February 22, 2006 | $301.8 |
| Vanuatu | March 2, 2006 | $65.4 |
| Armenia | March 27, 2006 | $176.6 |
| Ghana | August 1, 2006 | $536.3 |
| Mali | November 13, 2006 | $434.3 |
| El Salvador | November 29, 2006 | $449.6 |
| Mozambique | July 13, 2007 | $447.9 |
| Lesotho | July 23, 2007 | $358.0 |
| Morocco | August 31, 2007 | $650.1 |
| Mongolia | October 22, 2007 | $269.0 |
| Tanzania | February 17, 2008 | $694.5 |
| Burkina Faso | July 14, 2008 | $474.7 |
| Namibia | July 28, 2008 | $295.7 |
| Senegal | September 16, 2009 | $433.3 |
| Moldova | January 22, 2010 | $259.4 |
| Philippines | September 23, 2010 | $385.1 |
| Jordan | October 25, 2010 | $272.9 |
| Malawi | April 7, 2011 | $344.8 |
| Indonesia | November 19, 2011 | $474.0 |
| Cabo Verde | February 10, 2012 | $65.6 |
| Zambia | May 10, 2012 | $332.1 |
| Georgia | July 26, 2013 | $138.6 |
| Ghana | August 5, 2014 | $310.8 |
| El Salvador | September 30, 2014 | $270.7 |
| Benin | September 15, 2015 | $391.0 |
| Liberia | October 2, 2015 | $237.8 |
| Morocco | November 30, 2015 | $449.5 |
MCC Partner Countries in Compact Implementation
Five countries in MCC’s portfolio were in compact implementation as of September 30, 2023. Compact implementation begins upon entry into force (EIF) of the compact agreement, marking the start of the implementation period. Each compact is managed and implemented by an accountable entity, generally known as the Millennium Challenge Account (MCA), established by the partner country government. Key implementation milestones from FY 2023 are described below. Table 2 shows FY 2023 Compact Obligations and Expenditures.
Côte d’Ivoire
MCC’s $536.74 million compact with the Government of Côte d’Ivoire aims to support the country’s goal to diversify its economy through projects in skills development and transportation. The Abidjan Transport Project aims to reduce transport costs and travel times along targeted road segments, in and around the port of Abidjan, while improving overall pedestrian and vehicle mobility and safety. In FY 2023, four road contracts were signed, marking the start of work on the single largest U.S.-funded infrastructure investment in Côte d’Ivoire. The Skills for Employability and Productivity Project intends to increase access to quality secondary education, along with improved governance of the education sector. In FY 2023, three consortium agreements with implementing partners were signed for the technical vocational education and training centers, and construction commenced on 19 secondary schools. The compact end date is August 5, 2025.
Nepal
MCC’s $500 million compact with Nepal aims to increase the availability of reliable electricity, improve road quality and facilitate power trade between Nepal and India. The Government of Nepal has committed an additional $197 million toward the compact program, for a combined total investment of $697 million. In May 2023, MCC and the government signed an implementation letter that increased the government’s contribution by $67 million to its current level of $197 million to fund expanded bay capacity at each of the three proposed substations and to support the construction of the cross-border transmission line segment connecting the corridor to the Indian border. Over the course of FY 2023, MCA-Nepal launched three critical path procurements under the Electricity Transmission Project for the construction of transmission lines, construction of the three substations, and supervision engineer consulting services. The compact entered into force on August 30, 2023.
Niger
Following the Nigerien military’s actions against the democratically elected government on July 26, 2023, MCC’s Board of Directors approved the suspension of all MCC assistance to Niger on September 13, 2023. The military’s actions are contrary to MCC’s statutorily-mandated eligibility criteria and the agency’s commitment to democratic governance and upholding the rule of law. MCC implemented an orderly wind-down of the compact, the term of which ends on January 26, 2024. Accomplishments to date of the $442 million Sustainable Water and Agriculture Compact include full rehabilitation of the largest irrigation system in Konni to improve water management and crop production across approximately 2,400 hectares, supporting more than six thousand families, and the full rehabilitation of 300 kilometers of critical roads facilitating farm families’ access to internal and regional markets. Four years of national livestock vaccination campaigns were financed by the compact, reducing disease prevalence to acceptable levels. The reestablishment of 100,000 hectares of common grazing areas to support animal husbandry managed mainly by women was completed. Significant accomplishments in national policy reforms include fertilizer importation and distribution, road network maintenance financing, and institutional capacity to improve management of wetland sites along a large stretch of the Niger river.
Mongolia
The Government of Mongolia is implementing the $350 million Mongolia Water Compact to sustainably increase Ulaanbaatar’s water supply, helping it avoid an imminent water shortage and supporting economic development. The Mongolian Government is separately providing up to an additional $111.8 million in country contribution to support the implementation of the compact, which entered into force on March 31, 2021. Throughout FY 2023, MCA-Mongolia focused on progressing infrastructure work to ensure completion of the Downstream Wells Activity and enable operationalization of the advanced water purification plant (AWPP) by 2025. Civil works advanced significantly on key infrastructure, and complementary work (such as the Government of Mongolia’s procurement of high-voltage power supply that will connect to the AWPP) was successfully completed. Completion of detailed designs and initial construction activities moved ahead on the Wastewater Recycling Activity. On the Sustainability Activity, numerous components advanced, including the award of a contract for social and behavior change, which will focus on interventions to enhance the sustainability of Mongolian water sector institutions through public outreach on tariff reform and water costs, institutional strengthening and service improvements. Substantial progress was made on automating water kiosks, which are expected to increase water access to residents of Ulaanbaatar’s ger (circular felt dwellings) districts. Additionally, an interagency working group led by the Government of Mongolia began engaging with the 70 worst polluters of the city’s Tuul River to adopt needed industrial pretreatment pollution controls in support of compact requirements. The compact end date is March 31, 2026.
Senegal
MCC’s $550 million compact with Senegal is designed to strengthen the country’s power sector by increasing reliability and access to electricity and by helping the Government of Senegal establish a modern and efficient foundation upon which the nation’s power system can grow. Investments focus on electricity sector policy, institutional and regulatory reform, upgrading the high-voltage transmission network in and around Dakar, and expanding rural electricity access through distribution network upgrades and enhancements to consumer-side elements. Ensuring consistent and affordable access to electricity in Senegal is expected to allow businesses to grow, catalyze private sector investment, increase productivity and employment, and ultimately support the diversification and growth of Senegal’s economy. In FY 2023, MCA-Senegal II finalized all contract signatures for the construction of substations and underground and undersea high-voltage transmission lines in the Dakar region. The undersea transmission line contract represents the largest contract funded by MCC with an overall budget of $203 million. During FY 2023, MCA-Senegal II also worked to finalize the compact’s last major infrastructure procurement, which relates to the Increasing Access to Electricity in Rural and Peri-Urban Areas Project, and to operationalize legal, policy and institutional reform commitments made by the Government of Senegal. The compact end date is September 9, 2026.
| Activity in Fiscal Year 2023 | |||||
|---|---|---|---|---|---|
| Section 609 (g) Compact Facilitation Funding | Section 605 Assistance | ||||
| Partner Country | Total Compact Amount, Including Amendments | Obligations | Expenditures | Obligations | Expenditures |
| Benin | $391.0 | 116.3 | |||
| Benin (Regional) | $202.0 | 17.0 | |||
| Burkina Faso | $450.0 | (29.4) | 1.4 | ||
| Côte d’Ivoire | $536.7 | 0.5 | 73.0 | ||
| Ghana | $315.9 | (5.0) | |||
| Indonesia | $649.0 | 24.2 | 0.4 | ||
| Kosovo | $202.0 | 0.2 | |||
| Lesotho | $300.0 | 0.3 | |||
| Malawi | $350.0 | 0.7 | |||
| Mongolia | $350.0 | 0.9 | 49.1 | ||
| Morocco | $460.5 | (11.0) | 122.4 | ||
| Mozambique | $500.0 | 50.2 | |||
| Nepal | $500.0 | 5.9 | 459.5 | ||
| Niger | $442.6 | 85.5 | |||
| Niger (Regional) | $302.0 | 14.0 | |||
| Senegal | $550.0 | 34.0 | |||
| Timor-Leste | $420.0 | 0.2 | |||
| Partner Country | Obligations (in millions of dollars) | Expenditures (in millions of dollars) |
|---|---|---|
| Lesotho MCC and the Government of Lesotho signed a $300 million compact on May 12, 2022. The majority of MCA-Lesotho executive staff have been hired; recruitment of the remaining positions is underway. Compact entry into force is anticipated in spring 2024. The compact aims to address the binding constraint of ineffective policy planning, coordination and execution that prevents the Government of Lesotho from delivering public goods and services that are essential for private sector growth.The compact consists of projects in health, irrigated horticulture and business environment strengthening. It also includes an investment through the new American Catalyst Facility for Development (ACFD) mechanism, a collaboration between MCC and the U.S. International Development Finance Corporation (DFC). The Health Systems Strengthening Project aims to strengthen the delivery of primary health care services, improve the efficiency of government expenditures, modernize and make interoperable health data systems, and address the unique needs of gender-based violence treatment and referral services. The Market Driven Irrigated Horticulture Project aims to catalyze private sector investment in horticulture through investments in irrigation infrastructure and policy reform while providing technical support to local communities and creating transparent and sustainable access to land and water. The Business Environment and Technical Assistance Project will work across key productive sectors like agriculture, creative industries, manufacturing and tourism to support the growth of existing and new firms through establishing an effective communication framework with the government, technical assistance, business development services, and linkages to financing opportunities. To ensure inclusive growth, the projects include targeted strategies to empower women and youth. |
$30.3 | $0.3 |
| Kosovo MCC and the Government of Kosovo signed a $202 million compact on July 15, 2022. The compact is designed to help accelerate Kosovo’s transition to a more sustainable, inclusive, reliable and affordable energy future via three projects supporting the energy sector. The Energy Storage Project will support battery storage systems designed to enable Kosovo’s transmission system and market operator to cost-effectively smooth out imbalances in the electricity grid. The Just and Equitable Transition Acceleration (JETA) Project will support female participation in energy-related training programs, increasing the number of qualified women in the energy sector with a focus on increased knowledge and incentives among employers to create more inclusive workplaces. The ACFD Project aims to leverage financing from the DFC to support one or more blended finance transitions to catalyze private investment in Kosovo to complement the objectives of the Energy Storage and JETA Projects. Since compact ratification, MCC and the Government of Kosovo have continued to progress toward entry into force (EIF), with multiple major milestones already complete, including the hiring of the CEO and two DCEOs for MCA-Kosovo, the establishment of the MCA-Kosovo Board, and work on fulfilling conditions precedent to EIF. The Government of Kosovo and MCC are targeting spring 2024 for the compact’s EIF. |
$21.2 | $0.2 |
| Timor-Leste MCC and the Government of Timor-Leste signed a $420 million compact on July 19, 2022. The Timor-Leste Compact aims to address the binding constraint of human-capital through two projects focused on improving the health and skills of the Timorese population. The Water, Sanitation and Drainage (WSD) Project seeks to reduce the presence of disease-causing pathogens in piped and stored water and groundwater through the construction of the country’s first central wastewater system, related drainage network improvements, and a plant to produce the disinfectant needed to treat the water supply across the capital city of Dili and four municipalities. The WSD Project will also support key policy and institutional reforms to support long-term sustainability of water and sanitation infrastructure as well as social and behavior change efforts to improve household water management and hygiene practices. The Teaching and Leading the Next Generation of Timorese (TALENT) Project seeks to improve student learning outcomes in numeracy, literacy and soft skills by investing in the training of secondary school teachers and school leadership. The TALENT Project will establish a Center of Excellence as the first formal pre-service teacher training and certification institution in Timor-Leste for secondary education. Trainings will be delivered to current and future secondary school teachers and school leaders across the country. This project will also seek to increase the number of women in secondary school teaching and leadership positions through a specific women’s economic empowerment component. Since compact signing, the Government of Timor-Leste and MCC have continued to make steady progress, including ratification of the compact, execution of the Program Implementation Agreement, legal establishment of the MCA Timor-Leste (MCA-TL), appointment of the MCA-TL Board of Directors, and launching key procurements and recruitments to prepare for implementation. |
$51.0 | $0.2 |
| Malawi MCC and the Government of Malawi signed a $350 million compact on September 28, 2022. MCC and its Malawian counterparts developed a program aimed at improving land efficiency as a critical production input for economic growth and increasing competitiveness in the agriculture and transport sectors. The Land Project activities include strengthening estate sector management by renewing estate leaseholds or reallocating them for higher-value use and achieving more productive use of land through better-funded land administration in rural and urban environments. The Agricultural Growth Corridors Project aims to reduce the costs of transport and support commercial agricultural value chains by reducing the costs of doing business for firms and farmers in targeted rural areas. The ACFD Project is a joint effort between MCC and the DFC to identify opportunities to further invest in Malawi’s private sector. The compact will integrate climate resiliency in its investments and foster inclusivity by incorporating women and smallholders into reforms. Progress on establishment of MCA-Malawi is well underway, with the CEO and key directors recently hired. The compact is expected to enter into force in spring 2024. |
$21.1 | $0.7 |
| Benin Concurrent Regional On December 14, 2022, MCC signed its first concurrent regional compacts with Benin and Niger. This program was initially designed to rehabilitate portions of the existing transport corridor between Cotonou in Benin and Niamey in Niger, while addressing some of the institutional and market constraints that raise the financial and time costs of transporting goods along this road. This investment has a clear link to the MCC investment at the Port of Cotonou in Benin’s prior compact, as well as to the recent MCC compact program in Niger focused on agriculture and roads. The $202 million Benin concurrent regional compact continues to work toward an anticipated EIF in early 2025, independent of developments in Niger. The Government of Benin established the regional compact accountable entity, MCA-Benin Regional, through decree in May 2023. An independent firm has begun the recruitment process for key MCA staff and key policy reform and engineering design procurements were launched in September 2023. |
$17.0 | $0 |
| Niger Concurrent Regional MCC signed its first concurrent regional compacts with Benin and Niger on December 14, 2022. This program was initially designed to rehabilitate portions of the existing transport corridor between Cotonou in Benin and Niamey in Niger, while addressing some of the institutional and market constraints that raise the financial and time costs of transporting goods along this road. Following the Nigerien military’s actions against the democratically elected government on July 26, 2023, MCC suspended assistance to Niger in September 2023, stopping all preparatory work on the $302 million Niger Regional Transport Compact. The Nigerien military’s actions are contrary to MCC’s statutorily mandated eligibility criteria and the agency’s commitment to democratic governance and upholding the rule of law. |
$14.0 | $0 |
| Indonesia On April 13, 2023, MCC and the Government of Indonesia signed the $649 million Indonesia Infrastructure and Finance Compact. The Government of Indonesia contributed an additional $49 million, bringing the total size of the investment to $698 million. The compact assists the Government of Indonesia in addressing the economic binding constraint of costly and underdeveloped financial intermediation by addressing gaps in infrastructure finance, particularly transport and logistics infrastructure, and increasing access to finance for micro-, small and medium-sized enterprises (MSMEs). The compact will support three projects and has a geographical focus in five priority provinces: South Sumatra, Riau, North Sulawesi, Riau Islands and Bali. The Advancing Transport and Logistics Accessibility Services Project aims to improve transport planning and preparation in the target provinces. The Financial Markets Development Project is designed to help transactions reach financial close using structured finance, including participation by institutional investors and with a focus on local currency transactions. The Access to Finance for Women-owned / Micro-, Small and Medium-Sized Enterprises (W/MSMEs) Project aims to increase lending by formal financial service providers to MSMEs and W/MSMEs in the target provinces to support their businesses. In parallel, MCC has identified opportunities to maximize the impact of the proposed projects’ climate-related components, consistent with Indonesia’s climate goals and MCC’s Climate Strategy. The compact will promote green finance tools and include a project preparation facility that will focus on climate-adaptive and mitigating transport and logistics solutions. MCA-Indonesia was established in 2023 and is currently in the process of hiring its remaining key staff before expected EIF in summer 2024. |
$24.2 | $0.4 |
| Mozambique MCC and the Government of the Republic of Mozambique (GRM) signed the $500 million Mozambique Connectivity and Coastal Resilience Compact on September 21, 2023. The GRM committed a $37 million contribution. The compact targets economic growth in the Province of Zambezia through three integrated projects: the Connectivity and Rural Transport Project to improve the reach and resiliency of the transport network, including vast improvements to the national road maintenance facility; the Promoting Reform and Investment in Agriculture Project, which includes a series of fiscal reforms to improve the business-enabling environment and incentivize greater investment in commercial agriculture while promoting investment and improved inputs to smallholder famers; and the Coastal Livelihoods and Climate Resilience Project, which seeks to improve the resiliency and economic opportunity for coastal communities through conservation and improved fisheries. All three projects include robust protections for women and youth, with specific programming to address barriers to women’s mobility and participation, combatting gender-based violence, and curbing trends of human trafficking. Establishment of MCA-Mozambique is underway. The compact is expected to enter into force in 2025. |
$50.2 | $0 |
Note: For MCC’s financial reporting, disbursements are expenditures. Compact funds are fully obligated, and the five-year compact term starts when the compact enters into force
Compacts in Development as of September 30, 2023
During FY 2023, MCC continued to work with six countries to develop potential compacts and continued developing potential concurrent compacts with two partner countries in West Africa.
Belize
Following agreement between MCC and the Government of Belize in 2022 that the potential compact would focus on two binding constraints on growth—the low quality of education and high cost of electricity—MCC and the government signed a $10 million compact development funding agreement in March 2023 to pursue project design and preparation work for the proposed compact. MCC and the Government of Belize subsequently focused on refining two potential projects to address the binding constraints, namely (1) improving access to and the quality of secondary education and reducing skills gaps in key growth industries to increase the number of post-primary graduates with the competencies needed by the labor market, and (2) improving electricity sector governance and supporting the acquisition of low-cost renewable energy resources to decrease the cost of electricity. The compact is expected to be presented to MCC’s Board for approval in June 2024.
The Gambia
In December 2022, MCC’s Board of Directors selected The Gambia as eligible to develop a compact program. The Government of The Gambia appointed a national coordinator, allocated an initial budget of $1 million of government funding for the first year of compact development, and stood up a compact development team. The Government of The Gambia prioritized underutilization of the Gambia River and education as the binding constraints to inclusive growth for further exploration and as a basis for a compact program. MCC is now exploring education investments that would increase the number of Gambians who have the knowledge, skills and abilities for their economic advancement, and investments that would revitalize the Gambia River to reduce transport costs and increase tourism revenue. The compact is expected to be presented for consideration by MCC’s Board in FY 2025.
Zambia
MCC is currently working with counterparts in the Government of Zambia to develop three potential projects: (1) investment in roads, road maintenance and border posts to reduce the cost of transportation and logistics for agriculture; (2) increased production of crops and agro-processing in high-value agriculture chains through improved access to electricity, irrigation and logistics investments; and (3) support for reforms that enable a more conducive environment for private sector agriculture investments. MCC aims to submit the compact to MCC’s Board of Directors for approval in September 2024, with compact signing expected in FY 2025.
Sierra Leone
MCC and the Government of Sierra Leone are developing a compact aimed at addressing the country’s power constraint, building on work in the energy sector completed under MCC’s Sierra Leone Threshold Program that closed in 2021. Four potential projects are currently under consideration for MCC investment. One project would seek to expand Sierra Leone’s electricity transmission grid with new, climate-resilient infrastructure. Another project would aim to increase the generation of climate-friendly energy in Sierra Leone, including through potential support for targeted investments in solar and hydro power projects. A third project would aim to improve the resilience and stability of Sierra Leone’s limited existing distribution network and potentially expand the network to new customers, including select agribusinesses to reduce post-harvest losses through productive use of energy. The fourth project would be expected to support the Government of Sierra Leone’s efforts to plan and coordinate energy sector investments, ensuring the sustainability of MCC projects and activities. MCC had planned to submit a negotiated compact to MCC’s Board of Directors for approval in September 2023 but postponed compact negotiations in response to concerns over the credibility of the June 2023 election results. At the end of FY 2023, MCC was encouraging the government to demonstrate a renewed commitment to MCC’s eligibility criteria and engage in fruitful dialogue to address electoral concerns so that the proposed compact could be advanced in the future.
Tunisia
MCC’s Board of Directors approved the Tunisia Compact in June 2021, but compact signing remains on hold until the Government of Tunisia makes significant progress toward democratic governance. The Tunisia Compact features two projects focused on addressing Tunisia’s constraints on growth. The Transport and Trade Project is designed to make it easier and less expensive for businesses to engage in trade in Tunisia and includes investments to improve management and expand infrastructure at the Port of Rades, Tunisia’s principal port. The compact also aims to simplify and digitalize procedures and regulations in the transport and trade sectors. The Water Project aims to improve the sustainable use of scarce groundwater resources while moving the country toward increased water sustainability. The compact features new partnerships using the ACFD mechanism, an MCC–DFC collaboration to catalyze greater private sector investment, and collaboration with the U.S. Small Business Administration to introduce new water-efficient technologies to farmers in Tunisia. The compact program also integrates gender and social inclusion by improving market access for women-owned enterprises.
Togo
In December 2022, MCC’s Board of Directors selected Togo as eligible to develop a compact, and MCC is piloting a fast-track (24-month) compact development process with the country. The Government of Togo designated a national coordinator in early 2023 and recruited technical team members to enable rapid and proactive engagement with MCC. The Government of Togo selected the energy and digital sectors as the focus of compact development based on an analysis of constraints on economic growth. Togo’s aspiration is to strategically invest in the energy and digital sectors to modernize their economy, catalyze growth and serve as a hub of digital innovation in West Africa. MCC and the Government of Togo have since advanced the root cause analysis and signed a compact development funding agreement for up to $12 million that has allowed the Government of Togo to bring on additional resources. In June 2023, CEO Albright visited Togo to meet with President Gnassingbé and private sector stakeholders as part of MCC’s efforts to better understand the relevant sectors and develop the compact. The Government of Togo has proposed several potential projects, and feasibility studies have been designed with a view to prioritizing and selecting those projects that best meet MCC’s investment criteria and the criteria reflecting the fast-track development process. MCC aims to submit the compact to MCC’s Board of Directors for approval by the end of 2024.
Concurrent Regional: Côte d’Ivoire
MCC and the Government of Côte d’Ivoire are developing a concurrent compact program for regional integration with Côte d’Ivoire, in partnership with entities of the Economic Community of West African States (ECOWAS), including the West African Power Pool (WAPP), the future Information and Coordination Center (ICC) and the ECOWAS Regional Electricity Regulatory Authority (ERERA). The compact is expected to: (1) strengthen market integration between Côte d’Ivoire and the West African energy sector; (2) reinforce Côte d’Ivoire’s interconnected power grid to provide stable and affordable electricity to meet national demand and solidify its role as an anchor power exporter to the West Africa region; (3) strengthen WAPP, ICC, and ERERA’s institutional and operational capacity to monitor and ensure the effectiveness of the purchase, sale and movement of energy around the West Africa grid; and (4) build capacity in regional and national energy institutions to ensure environmentally sustainable and socially inclusive operations and service, enabling them to reach gender integration and universal access objectives. MCC expects to submit the Côte d’Ivoire concurrent compact to MCC’s Board of Directors in September 2024.
Concurrent Regional: Senegal
In December 2022, MCC’s Board of Directors selected Senegal as eligible to develop a concurrent regional compact. MCC, in partnership with the Government of Senegal, conducted a sector prioritization analysis to identify priority sectors for MCC assistance. In October 2023, Senegal identified the blue economy as their sector of choice for the proposed concurrent regional compact. MCC is now working with the Government of Senegal to advance progress to the next phase of compact development with a focus on job creation and growth, particularly for young people and women in the region.
MCC Threshold Programs: Results Through Reforms
Threshold programs assist promising candidate countries to become eligible for a compact by offering them the opportunity to demonstrate their commitment to democratic governance, economic freedom and investments in their people while advancing policy reforms and strengthening institutions to address the most binding constraints on economic growth. Threshold programs complement the “MCC Effect” created by the MCC selection criteria and allow MCC to assess the opportunity for an impactful and cost-effective partnership before committing to a compact. MCC uses the same rigorous, evidence-based approach in threshold programs as it does in compacts, leading to high-quality programs that maximize potential systemic impact and lay the foundation for a higher level of assistance.
In FY 2023, MCC partnered to develop or implement threshold programs with The Gambia, Kenya, Kiribati, Mauritania, Solomon Islands and Togo.
The Gambia
MCC and the Government of The Gambia are implementing a $25 million Threshold Program focused on energy sector governance and operations. In FY 2023, the government formed MCA-Gambia, the entity that will implement the program, and recruited key staff. The MCA-Gambia board of directors held its first meeting in November 2022.
Kenya
On the margins of the United Nations General Assembly in September 2023, MCC and the Government of Kenya signed a $60 million grant agreement to fund the Kenya Urban Mobility and Growth Threshold Program. President William S. Ruto presided over the signing ceremony. The program aims to improve integrated transport planning, first and last mile connections to public transport, and urban planning and land use throughout the Nairobi metropolitan area. The program also contains funding to catalyze private financing for the acquisition of electric (or other low emission) buses to operate one or more lines of the bus rapid transit system.
Kiribati
In September 2023, MCC and the Government of Kiribati signed a $29 million grant agreement to fund the Kiribati Threshold Program. The signing ceremony was a highlight of the U.S.–Pacific Island Forum Leader’s Summit and was presided by Secretary of State Antony J. Blinken. The program aims to facilitate decent and inclusive employment by building the capabilities of the Kiribati Ministry of Employment and Human Resource, strengthening worker protections and family resilience, and establishing skills camps and academic scholarships for high school youth.
Mauritania
Mauritania was selected in December 2022 to develop a threshold program. MCC completed an analysis of the constraints on economic growth in early 2023. Following the selection of energy and climate change for deeper analysis, the Government of Mauritania began work to develop project concepts to address the root causes of one or both constraints.
Solomon Islands
The $20 million MCC Threshold Program with Solomon Islands addresses critical policy constraints on accessing land and investment for tourism development with full community participation and support. In 2022, implementation agreements were signed and workplans finalized with the Government of Solomon Islands and four implementing partners. The program is also piloting activities that will generate more reliable and sustainable benefits for communities from forest resources.
Togo
The $35 million MCC Threshold Program with Togo is focused on addressing critical constraints in the country’s land and information and communications technology (ICT) sectors. The Land Reform for Agricultural Production Project is focused on expanding people’s access to formalized land titles; activities are underway in several sites throughout the country. The ICT project is encouraging private sector investment in high-quality and affordable ICT services for citizens, supporting the implementation of a universal service fund, strengthening an independent regulatory body, and creating a digital transformation agency. Preparations began for an ICT activity focused on training women entrepreneurs.
For More
- Visit www.mcc.gov for the latest progress on each MCC partner country, including financial data, results and donor coordination efforts.
- Review MCC’s Fiscal Year 2023 Annual Management Report for financial statements and the independent auditor’s report.