Africa-Press – Lesotho. The Board of the Millennium Challenge Corporation (MCC) has approved a staggering US$300 million approximately M4.3 billion second compact for the government of Lesotho.
This is according to the MCC statement published last week. “The Millennium Challenge Corporation ‘s (MCC) Board of Directors held its quarterly meeting on March 31 and voted to approve two
grants programs- a $300 million Lesotho compact and a $60 million Kenya Threshold Program,” reads the MCC statement. “Through these partnerships, MCC will help Kenyan and
Lesotho governments tackle tough policy and institutional reforms and invest in critical infrastructure in the health, agriculture, finance and urban planning
sectors, creating pathways to prosperity for more than 2.5 million people,” said MCC’s Chief Executive Officer Alice Albright. This approval is a culmination of several negotiations
between the government of Lesotho and the MCC Board. In December 2014 Lesotho was reselected for eligibility by the MCC Board but the renewal was mired by
constraints following complaints by the United States (US) government over human rights abuse that was rampant in 2015. Recently in 2020, the US government had expressed concern
about the human trafficking that was going on in the country, bringing uncertainty over the renewal of this second compact. Had the country not taken radical steps to address the human trafficking crime, it would have risked
forfeiting this second compact. The annual US Trafficking in Persons (TIP) report of 2020 had placed Lesotho in Tier 3 junk status. Meanwhile, the country has since upgraded to Tier 2 and
according to the Ministry of Home Affairs, some inroads have been made in the fight against human trafficking. The Ministry through the support of the
international community and development partners had come up with the National Strategic Framework and Action Plan to Combat Trafficking in Persons (NSFAP)
2021-2026. Also, the government had earmarked funds to advance and support the
operations of the Anti-Trafficking Secretariat for the implementation of (NSFAP) 2021-2026. The MCC Compact II fund will focus on three projects being
the Health System Strengthening (HSS) Project, Business Environment and Technical Assistance (BETA) Project and Market-Driven Irrigation Horticulture Project.
The HSS Project is envisaged to support the government’s implementation of policy and institutional reforms to enhance the health system for improved quality and efficiency of health service delivery.
The BETA project is expected to improve access to finance through ways to grow and support successful local companies that target “structurally excluded” groups such as women and youth.
Thirdly, the MDIH Project will address food insecurity as well as the potential to increase public goods and services to vulnerable communities including the rural smallholder farmers, women and youth.
“MCC’s proposed compact with the Government of Lesotho seeks to improve health outcomes through better primary healthcare delivery,
increase incomes in rural communities through the provision of irrigated land for high-value crops, and boost profits and formal employment for women and
youth-owned enterprises,” MCC has said. Yesterday, Prime Minister Dr Moeketsi Majoro said the government will sign this deal with the MCC in May. Reacting to this development, the United States (US)
Ambassador to Lesotho Maria Brewer said: “The approval is a critically important step in Lesotho’s continued achievement of its development goals for the citizens of Lesotho.
The approval of this second compact between the MCC and Lesotho demonstrates the United States government’s commitment to remain a strong and enduring partner with Lesotho.
” Lesotho welcomed the first compact in 2007 to the tune of
US$362.2 million dedicated for mainly three projects in the water sector; health sector; and private sector development. “By the end of the compact in September 2013, the
government and MCC had spent nearly 99 percent of anticipated compact funds to improve water supply, increase access to essential health services, and remove
barriers to private sector investment. Approximately 1 million people are expected to benefit from the investments,” said the MCC. Established in 2004, MCC is an autonomous US government
that strives to “reduce global poverty through economic growth”. It provides “time-limited” grants that focus on infrastructure with policy and institutional reforms to countries that “meet rigorous standards for good governance, fighting corruption and respecting democratic rights.”
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