The U.S. Government's Millennium Challenge Corporation (MCC) Chief Executive Officer Daniel W. Yohannes joined African Development Bank (AfDB) Group President Donald Kaberuka in signing a memorandum of understanding (MOU) today to work together in promoting sustainable economic growth as the catalyst for poverty reduction.
"MCC is committed to facilitating partnerships that maximize our impact in the fight against global poverty. This partnership between MCC and the African Development Bank bolsters our efforts to reduce poverty, increases collaboration, and allows us to pursue more innovative solutions," said Mr. Yohannes.
MCC and AfDB, including its partner entity the African Development Fund, will collaborate on complementary program areas, including by strategically using AfDB grants in recipient countries in parallel with existing MCC investments, and by cooperating on future MCC compact development work in order to build on AfDB's regional experience, technical expertise, and lessons learned in sectors of common interest.
"We have agreed to collaborate through technical cooperation and parallel financing in key areas, such as infrastructure, water and sanitation, agriculture, environment, health and gender integration. As many of our client countries are recovering from the recent crises, we are urged to work closely together and leverage our comparative advantages," said AfDB President, Dr. Kaberuka.
MCC and AfDB will work together in developing and implementing programs and projects in African countries in a number of sectors, with an expected concentration on infrastructure. These collaborative efforts will likely be piloted initially in Mozambique, where AfDB will work with Millennium Challenge Account-Mozambique and the Government of Mozambique to identify investments compliementary to the MCC-funded program that would benefit from AfDB grants.
The MOU between MCC and AfDB reinforces ongoing cooperation and opens avenues for increasing the effectiveness of foreign assistance through formal partnership. MCC and AfDB will share their respective strengths, knowledge, and resources to support host-country development initiatives that advance their common goal to promote economic development in Africa.
Established in 1972, the African Development Fund (ADF) is administered by the African Development Bank and is composed of 24 donor countries, including the United States,and such African regional member countries as South Africa and Egypt. Its main objective is to reduce poverty in regional member countries by providing loans and grants. The ADF contributes to the promotion of economic and social development in 38 low-income African countries by providing concessional funding for projects and programs, as well as technical assistance for studies and capacity-building activities.
The African Development Bank, established in 1963, contributes to the economic and social progress of its regional member countries - individually and collectively. As of October 2010, the African Development Bank's authorized capital is subscribed to by 77 member countries made up of 53 African countries and 24 non-African countries.