‘MCC acted to aid Samia reforms, cut poverty risk’

Robert Raines, the deputy chief of mission at the United States Embassy, said in a statement yesterday that selecting Tanzania recognizes the reforms undertaken by President Samia Suluhu Hassan, with expectation that the reforms will be maintained.

“Since 2008, the MCC funding has been working to improve infrastructure in Tanzania,” he said, expressing the view that the US looks forward to a more advanced partnership.

The reinstating was done at the MCC quarterly meeting on December 13 as newly eligible to develop a compact enhancing regional economic integration, the fund stated.

The MCC board also selected Tanzania and the Philippines to develop threshold programmes, described as smaller grant programmes designed to support policy and institutional reforms that address economic growth constraints.

Alice Albright, the MCC chief executive officer, said the board’s selection of Cabo Verde, the Philippines and Tanzania advances MCC’s mission to forge strong partnerships with countries that have demonstrated a commitment to democratic governance, investing in their people and economic freedom.

“In recent years, both the Philippines and Tanzania have demonstrated renewed commitments to advancing critical reforms to strengthen democratic governance, protect human rights and fight corruption,” she stated.

In recognition of these efforts, the board selected the Philippines and Tanzania to partner with MCC in the development of threshold programmes that focus on the policy and institutional reforms, she said, asserting that countries can undertake to reduce poverty while generating economic growth.

The Millennium Challenge Corporation is an independent U.S. government agency working to reduce global poverty through economic growth, created in 2004.

It provides time-limited grants and assistance to countries that meet rigorous standards for good governance, fighting corruption and respecting democratic rights, the MCC executive noted.

Aneth Mwaipyana, deputy chief executive officer for the Economic Society of Tanzania, said the fund should emphasize rural infrastructure (roads and power) to boost market integration, as well as agriculture and social infrastructure (education and health) to enhance human capital.

“Gains will depend on what terms Tanzania defines in executing the project and make sure that it reduces US control of the project. We should raise local content,” she emphasized.

MCC suspended funding Tanzania in March 2016 on several grounds including shrinking democratic space. This denied the country a grant of $472m intended to help bolster its power sector.