In July 2005, the Millennium Challenge Corporation signed a five-year, $110 million compact with the Government of Cape Verde aimed at contributing to the transformation of their economy from aid-dependency to sustainable, private-sector led growth. The strategic investments in three projects will improve the country’s investment climate and reform the financial sector; improve infrastructure to support increased economic activity and provide access to markets, employment, and social services; increase agricultural productivity and raise the income of the rural population; and carry out some key policy reforms needed for sustained economic growth. The compact in Cape Verde entered into force (EIF) in October 2005, formally initiating the five-year timeline for project implementation. The compact closed out in October 2010.
Cape Verde was selected as eligible to develop a second MCC compact on December 9, 2009.