Ghana is third biggest receiver of MCC’s investment in Africa
The Millennium Challenge Compact (MCC) was introduced in 2004 by the US government during the era of former President George W. Bush. The purpose was to help lead the fight against global poverty and it has so far invested over $8 billion into developing countries, and Ghana is the third biggest beneficiary country in Africa.
According to the MCC’s Chief Executive Officer (CEO), Mr. Daniel W. Yohannes, two-thirds of these investments have been spent in Africa.
“Of MCC’s $8 billion investment, approximately two-thirds is committed to the continent of Africa”, said Mr Yohannes in a speech he delivered on the topic “Project on Prosperity and Development” at the Center for Strategic and International Studies in Washington DC on May 19, 2011.
Mr. Yohannes added that these are “centered in infrastructure, agriculture, and energy projects – key vital sectors to facilitate trade and investment related activities.”
This is to help African countries shore up their stability to advance the U.S. security interests and to boost and to become stronger trading partners for America, he said.
Giving details about the MCC operations in Africa to the U. S. House of Representatives Committee on Foreign Affairs Subcommittee on Africa, Global Health, and Human Rights on May 10, 2011, Mr. Patrick C. Fine, Vice President of the MCC noted, “After seven years of operations, MCC has committed $8.2 billion to reducing poverty in 23 countries, $4.2 billion of which has been contracted and $2.2 billion of which has been disbursed” adding “we expect to generate $12.3 billion in increased incomes for 172 million people over the coming years.”
Mr. Fine said, of the 23 MCC Compacts signed to date, 13 have been with African countries. “Nearly 60% of our compact countries are located in Africa, and projects in those nations receive two-thirds of our funds”, he added.
According to the MCC’s website, Ghana which signed for the compact on August 1, 2006 is the third biggest earner of the compact in the world, receiving an amount of $547 million after Tanzania with $698 million and Morocco which had $697million.
Currently in year three of its implementation, the Millennium Challenge Account Ghana Compact ends in February, 16, 2012 (270 days more) , according to MIDA’s website as at May 20, 2011.
But the hopes of the country is still high as all indicators show that Ghana will definitely get a second compact. The country has been selected by the MCC’s Board of Directors as being eligible for another compact.
The country is however, expected to develop new proposals to be able to access the funds.
Ghana’s first compact focused on transportation, rural development and agriculture.
By Ekow Quandzie