On June 28th, 2021, the United States of America and the Republic of Madagascar signed the Madagascar MCC agreement, which is a five-year compact totaling $250 million. This agreement is set to focus on increasing the country`s agricultural productivity by improving its transportation infrastructure and increasing access to markets.
The MCC, or Millennium Challenge Corporation, is an independent US foreign aid agency that focuses on economic growth, good governance, and investment in people. They collaborate with countries that have demonstrated good governance and are committed to economic growth and poverty reduction.
Madagascar is a country with an economy that relies heavily on agriculture, which employs over 75% of the population. However, due to limited access to transportation infrastructure and markets, the agricultural sector has not reached its full potential. The Madagascar MCC agreement aims to change that.
The compact will allocate $70 million to improve the country`s transportation infrastructure. This includes rehabilitating 300 kilometers of rural roads, which will make it easier for farmers to transport their goods to markets. Additionally, $100 million will be set aside for increasing agricultural productivity, with a focus on rice, cassava, and livestock farmers. This will include initiatives to improve irrigation, promote the use of high-yield varieties of crops, and increase access to veterinary care.
Another aspect of the agreement includes $50 million for technical assistance and training programs for Malagasy institutions. This will include training for farmers in best agricultural practices and financial management, as well as support for the country`s public financial management and economic policy reform.
The Madagascar MCC agreement is a significant step towards economic growth and poverty reduction in the country. By improving the transportation infrastructure and increasing agricultural productivity, Madagascar will be able to better participate in international trade and compete with other African nations in the global market. The technical assistance and training programs will also help ensure sustainable growth and long-term success for the country.
Overall, this agreement is an excellent example of how foreign aid can be used to promote economic development and good governance in partner countries. It shows the importance of collaboration and investment in people, and we can only hope to see more successes like this in the future.