- Grant Total: $110,078,488
- Grant Committed: $108,512,458
- Grant Expended: $108,512,458
- Signed: July 5, 2005
- Entry Into Force: October 18, 2005
- Completed: October 17, 2010
In July 2005, the Millennium Challenge Corporation signed a five-year, $110 million compact with the Government of Cape Verde aimed at contributing to the transformation of their economy from aid-dependency to sustainable, private-sector led growth. The strategic investments in three projects will improve the country’s investment climate and reform the financial sector; improve infrastructure to support increased economic activity and provide access to markets, employment, and social services; increase agricultural productivity and raise the income of the rural population; and carry out some key policy reforms needed for sustained economic growth. The compact in Cape Verde entered into force (EIF) in October 2005, formally initiating the five-year timeline for project implementation. The compact closed out in October 2010.
Cape Verde was selected as eligible to develop a second MCC compact on December 9, 2009.
Develop the private sector by reducing obstacles to private sector investment and reforming the financial sector
- Remove constraints to private sector investment through policy reforms such as the creation of a commercial credit information bureau:
- Enable the Government of Cape Verde to make reforms in the financial sector to help increase access to financial services, especially microfinance, and expand access to the primary market for government securities; and
- Strengthen microfinance institutions so they may become sustainable.
Integrate internal markets and reduce transportation costs by improving transportation networks through road and bridge infrastructure on the islands of Santiago and Santo Antão and upgrading the Port of Praia
- Invest in roads and small bridges to ensure improved transportation links to social services, employment opportunities, local markets, and ports and airports; and
- Make improvements to the Port of Praia, which handles half of the island nation’s cargo, including construction of new facilities and installation of new security equipment.
Increase agricultural productivity on the islands of Santo Antão, Fogo, and São Nicolau by improving water management and soil conservation, strengthening agribusiness development services, and increasing access to credit and capacity of financial institutions
- Increase the capture, storage and distribution of rainfall water; and
- Mobilize agricultural support activities such as marketing, applied research, pest-control, training and extension services, and credit.