The MCC Board of Directors selects Cape Verde as eligible to apply for MCA assistance. The MCC Board considered both past and current policy performance in the areas of just and democratic governance, economic freedom, and investing in the health and education of their people.  Cape Verde was selected among a pool of 68 countries with a per capita income of $1465 or less.

The over $110 million, five-year compact with Cape Verde focuses on increasing rural incomes of the poor by increasing agricultural productivity, integrating internal markets, reducing transportation costs, and developing the private sector through the mobilization of private sector investment and financial sector reform.

MCC and the Republic of Cape Verde signs a five-year, $110 million compact aimed at contributing to the transformation of the island-nation’s economy from aid-dependency to sustainable, private-sector led growth. The strategic investments in three projects will improve the country.

The entry into force signals the beginning of the important implementation phase and the start of the five-year clock

Congresswoman Nancy Pelosi is briefed on the MCC compact in Cape Verde where she praises civil society engagement in compact implementation.

The Assomada/ Rincao road - 16 kilometers long - will serve the people of the coastal village of Rincao in accessing one of the largest markets in Cape Verde - Assomada - as well as in accessing schools and social services.

In an effort to mitigate the negative impacts of projects that improve transportation networks, such as an increase in HIV/AIDS rates, through both sex with migrant workers often found on construction crews and through opening previously inaccessible communities, MCA-CV implements an extensive HIV/AIDS awareness and prevention campaign to complement the MCC-funded construction of roads. These outreach activities and campaign are also extended to the bridges and port activities.

Construction of the bridges will help integrate internal markets,reduce transportation costs by improving transportation networks, and provide access to local services such as hospitals.  The estimated number of bridge beneficiaries on Santo Antão Island is 37,354.

A public sector-wide harmonized procurement law based on MCA practices passes. This new law establishes an integrated strategy for equal tender opportunities to ensure transparency and efficiency of public spending. MCA-CV trained approximately 400 procurement, auditors, and commercial agents on all islands to ensure proper implementation of the new law.

Microfinance Legislation: As a condition precedent to providing technical assistance to microfinance institutions (MFIs), the Cabinet of the Government of Cape Verde approves a microfinance law that, among other improvements, authorizes MFI collection of savings.

A Road Maintenance Fund for the maintenance and rehabilitation of the country’s road network financed by a levy on fuel is established by Parliamentary Law in response to the compact condition precedent.

The Orgaos-Pedra Badejo road stretches 10 kilometers long and six meters wide and will serve the people of one of Santiago Island’s agriculturally productive valleys by increasing access to markets as well as improving access to schools and social services.

Congressman Patrick Kennedy (MA) pays a visit to Cape verde. “Representing a significant number of Cape Verdean-Americans who live in Rhode Island’s first congressional district, I had an opportunity to visit Cape Verde and was greatly impressed by the professionalism with which Millennium Challenge Corporation projects were executed by the Cape Verdean government,” says Kennedy.

Congressman Barney Frank and seven accompanying Members of Congress visit Cape Verde conveying continued U.S interest in and support for Cape Verde. Congressman Frank is briefed about the MCC compact.

As part of the Watershed Management Project, the Agribusiness Development Activity aims to increase agricultural productivity on the islands of Santo Antão, Fogo, and São Nicolau by improving water management and soil conservation, strengthening agribusiness development services, and increasing access to credit and capacity of financial institutions.

Three centers located in in Fajã (São Nicolau), Ribeira de Ilhéu (Fogo), and Paul (Santo Antão) are rehabilitated and fully equipped to train and provide technical assistance to farmers in the three watershed intervention areas.

The Citizen’s House represents a paradigm shift in citizen and business access to a variety of government services. Registering a business - a service which previously took an average of 52 days – now takes an hour.  An immediate benefit of this accomplishment was the satisfaction of the business start up indicator for MCC eligibility in FY10.  MCC funded equipment, software, and technical assistance for citizens and businesses to access public services.

Eight Microfinance Institutions (MFI) are identified for technical assistance operating in the agriculture intervention areas on the islands of Fogo, Sao Nicolau, and Santo Antao. It provides new microcredit methodologies, new credit management, and monitoring abilities that improved the institutions’ work as well as their clients lives through the use of credit in a more efficient and innovative way.

This 14 kilometer road will connect two municipalities in the interior of the island of Santiago: Sao Miguel and Santa Catarina. This connection will allow access to one of the most important markets in Cape Verde - Assomada - as well as schools, hospitals, and other services. It is a very important infrastructure project for tourism development in the coastal locality of Calheta in Sao Miguel.

Under the access to credit component, a $600,000 line of credit was made available to farmers for drip-irrigation installation and agribusinesses. The line of credit was disbursed through the microfinance institutions and the first microcredit loan was disbursed through the MFI named SOLDIFOGO.

MCC funded improvements to the Port of Praia, which handles half of the island nation’s cargo. The improvements to the Port of Praia, combined with the concurrent privatization of port services, are expected to increase the efficiency of the port and to prevent a bottleneck to growth in commerce, in particular in the tourism industry.

The Government of Cape Verde introduces a fee for the use of scarce irrigation water. The water fee will be used to finance the operations and maintenance of infrastructure guaranteeing access to water for drip irrigation and sustainability for farming.

Cape Verde will expand its e-government system to elevate efficiency and transparency in its procurement system to world-class standards. MCC will support NOSi (Operational Nucleus for the Information Society), the Cape Verdean agency responsible for e-government, by providing equipment, software, and technical expertise. More than $1 million of compact funds have been spent to strengthen Cape Verde’s e-government system.

MCC and the Government of Cape Verde hold an inauguration ceremony to celebrate the completion of the Orgãos-Pedra Badejo road, which is the first completed road under MCC’s compact with Cape Verde.  The road will positively impact Cape Verde’s economy by creating better access to markets and community services for its citizens along its path.The road, which stretches 10 kilometers long and six meters wide, is the first completed MCC road to be inaugurated in Africa and will serve the people of one of Santiago Island’s agriculturally productive valleys.

Rincão was an isolated locality due to lack of infrastructure and access to major cities like Assomada. Fishing became Rincão’s main means to survive. Now, people of Rincão are able to finally develop their community, with a road that would connect them to greater commerce and community services. With this completed road, the future of Rincão has the potential to attract tourism-related investments.

U.S. Secretary of State Hillary Rodham Clinton visits Cape Verde as part of an 11-day African tour. Secretary Clinton praises the government as “a model of democracy and economic progress in Africa.”

“Cape Verde is the first MCC partner country to be selected as eligible for a second compact,” Mr. Yohannes said. “Cape Verde illustrates many of the characteristics of a strong partner and has consistently displayed good economic and political governance.  We look forward to building on the successes of Cape Verde’s current efforts to combat poverty.”

Four bridges and a 1 Kilometer road are completed and functional during 2009

MCC CEO Daniel Yohannes visits Cape Verde as part of his first trip since he was appointed by President Obama.

The construction of the road from Grande to Calhetona was critical because it provides access to Praia, the capital of Cape Verde, and allows the citizens of these two municipalities to have access to the Regional Hospital of Santiago Norte, the University of Santiago,and the market in Assomada. In the opposite direction, the development of domestic tourism, fisheries, and agriculture in the municipality of Sao Miguel will also be facilitated.

MCC funded activities to increase the capture, storage, and distribution of rainfall water, which will allow poor farmers to irrigate their fields and increase agricultural productivity.

The Government of Cape Verde approves a decree law to eliminate regulatory and legal obstacles to movement of inspected and certified horticultural products, including actions to lift the embargo on exports of horticultural products from Santo Antao.  The Government of Cape Verde has approved a national decree lifting a more than 20-year embargo on inter-island agricultural exports from the island of Santo Antao, contingent upon the construction/operation of the MCC-funded post-harvest inspection center.

In ceremonies held by the Government of Cape Verde, the Ministry of Environment, Rural Development and Marine Resources, MCA, and MCC, the following infrastructure works are inaugurated: a rehabilitated rural extension center, which has been operating since August 2009 to meet the demands of farmers in the upper zone of Mosteiros watershed, 7 dikes, 7 reservoirs, and one water distribution system. The purpose of these infrastructure works are to promote sustainable management of natural resources, development of productive capacity and agribusinesses, improve adjustments to technological innovation, and strengthen synergies between services, beneficiaries, human resources, and financial services/ credit development.

The Post Harvest and Inspection Center is a key component for promoting the development of local horticultural production in Cape Verde. The center, located in Porto Novo in the Island of Santo Antao, has a capacity of 3,950 metric tons of storage per year and will offer services of cold storage, packing, grading and inspection to agricultural producers and intermediaries.  It is envisioned that the center will promote the benefits and practices of an integrated cold chain and serve as a point of connection between buyers and sellers, reducing post harvest losses significantly.  An integral part of this center is the inspection area where products will be treated based on well developed protocols and this would allow food inspectors to certify that the products leaving the island are free of millipedes, a pest that has limited inter-island trade for over 20 years.   The inauguration was held on October 15,2010 with the CEO’s presence.

The Port of Praia rehabilitation is the largest single activity of the Compact constituting about half of the $110 million budget. The Port Phase I contract was signed in July 2009 with works completed in September 2010, and inaugurated on October 14, 2010 with the CEO

An MCC delegation led by MCC CEO Daniel Yohannes celebrate the completion of the 5 year Cape Verde compact.