The Mozambican government and the US Millennium Challenge Corporation (MCC) on 20 April in Washington signed a revised agreement on the Compact Development Fund (CDF).

The packages of aid provided by the MCC are known as "compacts", and the agreement seeks to strengthen the capacity of the Compact II Development Office (GDC-II) in identifying and designing the projects that will form part of the Compact.

With the signature of the revised CDF agreement, according to a release from the Mozambican Ministry of Economy and Finance, US$10.75 million will be allocated for the preparation of Compact II, which is expected to benefit the entire country, but with a geographical emphasis on the central province of Zambezia.

The Minister of Economy and Finance, Max Tonela, who signed the agreement, said his signature represents an important commitment to the qualitative design of Compact II. He said the compact will contain projects in areas such as the promotion of investments in commercial agriculture, rural connectivity and transport, and the integrated management of climate and coastal development.

For her part, the MCC Deputy President for Compact Operations, Fatema Z. Sumar, said "with the funding that will be made available, the MCC and the Mozambican government will work to identify investment projects to reduce poverty and to speed up inclusive and sustainable economic growth".

It is expected that Compact II will be signed in 2023. The first MCC compact, valued at US$509 million, ran from 2008 to 2013.