Praia, Oct. 2, 2024 (Lusa) - The Millennium Challenge Corporation's (MCC) third financial support programme for Cabo Verde could be ready to sign at the beginning of 2026, Vice President Kyeh Kim said on Wednesday during a visit to the archipelago.
"It will take some time to develop this programme: we would like to identify the main problems and interventions, as well as carry out feasibility studies" so that the third 'compact' that Cabo Verde will benefit from can be implemented soon after signing, she said.
"Perhaps at the beginning of 2026 [we can] sign up to the programme," said the head of the US government development agency.
Only after the study will concrete projects and the amount of financial support be defined, given that "the US has budgetary restrictions. However, we will do our best to fight for an adequate envelope that is able to respond to some of the needs of this programme," added Kyeh Kim.
"This programme must be strategic, catalytic and transformative to stimulate economic growth" based on "regional integration and regional trade", she said.
The MCC vice-president was speaking at a press conference after signing a grant agreement with Cabo Verdean deputy prime minister Olavo Correia for US$5.6 million (€5 million) to help prepare the projects and the entire ‘compact’ - a grant that is in addition to others totalling US$6.3 million (€5.7 million) for this purpose.
The money will fund the activity plan of the Programme Development Unit (UDP), led by Joana Brito.
" Many times, people start to be amazed by the numbers. In my experience, it's the expensive that comes out cheap: the better the studies, the more participatory the approach and the more information we have, the better the decisions will be" about the initiatives to be funded, said Olavo Correia.
"It's worth having a good consultation with society as a whole, with partners and beneficiaries, so that the 'compact' can fulfil the ambitions of the Cabo Verdean nation and have a transformative impact," he added.
The MCC's third ‘compact’ in Cabo Verde will focus on the areas of digital transition and transport, with a view to links between islands and between the archipelago and the world, as well as regional trade integration.
The deputy prime minister with responsibility for the economy and finance reaffirmed the goal of doubling the country's economic growth potential.
Today's meeting also saw the presentation of Christopher Broughton, the US agency's new director for Cabo Verde, where he will be based to prepare the programme and who showed confidence in the unit that will carry out the work.
The MCC granted Cabo Verde its first aid package, worth €84.6 million, between 2005 and 2010, aimed at building up the country's infrastructure.
Two years later, it provided a second financial compact, worth €50.9 million, which ran until 2017, to improve the management of water resources and sanitation, as well as property management services.
The MCC provides grants and time-limited assistance to countries with good indicators in terms of governance, the fight against corruption and respect for democratic values.
LFO/AYLS // AYLS
Lusa
