Reducing Poverty Through Growth

Fact Sheet

April 8, 2008 www.mcc.gov

MCC Infrastructure Programs in African Countries

Poor infrastructure is an obstacle to private sector investment on the 

African continent, significantly driving up the cost of doing business, 

limiting new opportunities, and stunting economic growth. Additionally, research has shown strong links between improved infrastructure 

and poverty reduction, particularly in the areas of income, education, 

and health of the poor. As a result, the vast majority of countries eligible for Millennium Challenge Corporation funding have requested 

assistance in addressing local infrastructure needs. Among other 

initiatives, MCC projects include improvements to roads, bridges, 

energy facilities, water services, industries, and schools. Of MCC’s 

sixteen approved compacts, nine are with African countries, totaling 

about $3.8 billion. Thanks to the partnership between MCC and these 

countries, infrastructure improvements in Africa will help reduce poverty through sustainable economic growth. 

Benin

 Benin’s $307 million Compact, signed on February 22, 2006, features the improvement of operations 

 and infrastructure of the Port of Cotonou. The Compact includes upgrades to the physical 

 infrastructure of the port to provide easier access to gates, roads, facilities, and storage areas.

Cape Verde

Cape Verde’s $110 million Compact, signed on July 4, 2005, will improve the country’s physical infrastructure by upgrading roads and constructing bridges. The Compact also includes improvements to 

the Port of Praia to maximize its existing capacity and advance future expansion.

Ghana

Ghana’s $547 million Compact, signed on August 1, 2006, includes infrastructure projects that will 

expand a key section of the National Highway; the upgrading of roads by either paving or laying gravel; 

and improvements to the Lake Volta Ferry system. The Compact also includes infrastructure projects for 

school construction, rural electrification, rural water supply, and household latrine construction.

“Infrastructure is one of the most 

important driving forces for 

economic development.” 

-Atsushi Iimi

World Bank 

policy research working paper 

March 2008
Fact Sheet: MCC Infrastructure Programs in African Countries 2

Lesotho

Lesotho’s $363 million Compact, signed July 23, 2007, focuses on infrastructure upgrades that will 

improve the reliability of water supply and sanitation for industrial and residential uses and rehabilitate 

and expand infrastructure in urban areas. The Compact also includes the renovation of nearly 150 

health centers and the construction of a new central laboratory which will assist in blood sample collection, 

processing and storage. 

Mali

Mali’s $461 million Compact, signed on November 13, 2006, includes the renovation and modernization 

of the Bamako-Sénou Airport, including improvements to the runway. The project will address constraints to air traffic growth and increase the airport’s efficiency in both passenger and freight handling 

through airside and landside infrastructure improvements. The Alatona irrigation project will improve farmer 

incomes through the development and the expansion of irrigated agriculture, increased access to financial services 

and the rehabilitation of the Niono-Goma Coura Road.

Morocco

 Morocco’s $698 million Compact, signed on August 31, 2007, includes a Fruit Tree Productivity Project 

 aimed at stimulating growth in the agricultural sector and reducing volatility of agricultural production. 

 In Morocco’s oases, this project will support the upgrading of existing small-scale irrigation infrastructure 

and the rehabilitation of approximately 55,000 hectares of olive, fig and almond trees and the expansion of the 

same crops on approximately 120,000 hectares in rain-fed areas.

Mozambique

Mozambique’s $507 million Compact, signed on July 13, 2007, focuses on water, sanitation, and transportation infrastructure. Both the municipal water supply and sanitation systems will be expanded to 

reach a wider distribution network in smaller towns and municipalities. In addition, MCC funding will 

rehabilitate 491 kilometers of key segments of the National Route 1, which forms the backbone of country’s transportation network.

Tanzania

Tanzania’s $698 million Compact, signed on February 17, 2008, will target strategic investments in transportation, energy, and water to reduce poverty and stimulate economic growth. High traffic roads on the 

mainland will be rehabilitated together with rural roads on Zanzibar. 

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Millennium Challenge Corporation, a U.S. government corporation designed to work with developing countries, 

is based on the principle that aid is most effective when it reinforces sound political, economic, and social policies 

that promote poverty reduction through economic growth. For more about MCC, visit www.mcc.gov.