April 6, 2022


2 min read

Lesotho to sign M4.5 billion US grant

Lesotho to sign M4.5 billion US grant

The 2nd compact of US-MCC will focus on among others horticulture

Story highlights

    The compact will spur private sector growth by increasing workforce productivity
    The implementation is planned for 2023 until 2028

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LESOTHO will sign the second compact of the US-Millennium Challenge Corporation (MCC) in May this year, following the approval of US$300 million (M4.5 billion) by the MCC board.

During its quarterly meeting in March, the US MCC board of directors voted to approve a five-year grant that previously was spent to build clinics, roads and water supply amongst others.

The second compact consists of three projects comprising Health Systems Strengthening (HSS), the Market Driven Irrigated Horticulture (MDIH) Project as well as the Business Environment and Technical Assistance (BETA) Project.

“The country’s second compact programme will advance economic growth and poverty reduction by addressing the root cause of the constraint of ineffective policy planning, coordination and execution across three key sectors of health, agriculture and access to finance,” said government of Lesotho press attaché to the Prime Minister Buta Moseme this week.

He said the compact would spur private sector growth by increasing workforce productivity through improved health, investment in the emerging horticulture and the creation of a viable private business.

“It will provide technical assistance, incubation and acceleration services and access to finance,” said Mr Moseme.

“The compact investment is also designed to target structurally disadvantaged population, particularly the poor, women and youth.”

Through the grant, Mr Moseme said the government and MCC expected a stronger, more robust and organised private sector for an effective and efficient supply of goods and services.

“In turn, a more effective and efficient government can also provide the public with the goods and services necessary to stimulate and sustain private-sector led, poverty-reducing growth and job creation,” he added.

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Government has expressed satisfaction in partnering with MCC under the compact programme that supports building the country’s institutions.

Through reforms, the compact strengthens government to provide efficient and effective public goods and services such as health, education, roads and electricity.

MCC re-selected Lesotho as eligible for a second compact back in 2017 with the signing of the compact scheduled for this year, while the implementation is planned for 2023 until 2028.

Created by the US Congress in January 2004, the MCC is an agency committed to reducing poverty through economic growth. 

MCC is changing the conversation on how best to deliver smart US foreign assistance by focusing on good policies, country ownership and results.

In its first compact with Lesotho completed in 2013, MCC invested $362.5 million (M5.4 billion) to increase economic growth and reduce poverty by improving water supply, increasing access to essential health services and removing barriers to private sector investment.

The compact has rehabilitated over 140 clinics and outpatient departments, 2 300 households water connections and construction of the Metolong Water Treatment Plant as well as independent or joint land titles of over 17 000 women.






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