Namibia selected for US aid for poor nations

A DELEGATION from the United States was in Namibia, to meet Government officials and representatives of the private sector and civil society to discuss the Millennium Challenge Account (MCA) for which Namibia was recently selected.

The MCA is a US-administered account to help poor countries with a “results-driven approach to development with a focused mandate to reduce poverty through sustainable economic growth”. The Millennium Challenge Corporation (MCC) was established by US President George Bush in January to administer the MCA.The account is an incentive for policy reforms, which the US rewards with additional resources.Countries qualify for the MCA account if the US regards them as being governed justly, investing in people and encouraging economic policies and freedom that can lead to economic growth and eradicating poverty.Currently there are 23 countries around the globe eligible to receive funding.Speaking to journalists on Friday, MCC Managing Director Maureen Harrington said the ball was now in Namibia’s court, as the country was expected to submit a proposal to the MCC within six months, which would be assessed for approval.She made it clear that being selected as an eligible country does not guarantee an MCA grant.A strict assessment has to be made first before a country qualifies for funding.She said development priorities in the proposal could range from an education programme to access to quality healthcare, rural development or improving the business climate.”We invest in programmes that will give MCC and the people of Namibia the returns we all want on this investment – reduced poverty and sustainable economic growth… We will evaluate the proposal by asking, first, whether it identifies Namibia’s obstacles to growth and sets out a strategy for how the proposed programme will tackle those obstacles, and second, whether it reflects the goals of the people of Namibia, not simply one Ministry or sector,” she said.Harrington added that if the MCC was not happy with the proposal, then they would work with the Government to come up with a solution with the people of the country in mind.She also said the amount of the funding – the grant agreement between the Government and the MCC – was not a fixed amount and would be drawn up when a proposal was approved.The largest MCA grant to date was US$300 million for a project in Benin, said Harrington.Harrington and her team have already met with President Hifikepunye Pohamba, Prime Minister Nahas Angula, the National Planning Commission (NPC), and representatives of the private sector among others.The MCC will be in close liaison with the NPC during the whole process.Other countries that have been selected for the MCA include Mozambique, Lesotho, Madagascar, Tanzania, Senegal and Burkina Faso.The Millennium Challenge Corporation (MCC) was established by US President George Bush in January to administer the MCA.The account is an incentive for policy reforms, which the US rewards with additional resources.Countries qualify for the MCA account if the US regards them as being governed justly, investing in people and encouraging economic policies and freedom that can lead to economic growth and eradicating poverty.Currently there are 23 countries around the globe eligible to receive funding. Speaking to journalists on Friday, MCC Managing Director Maureen Harrington said the ball was now in Namibia’s court, as the country was expected to submit a proposal to the MCC within six months, which would be assessed for approval.She made it clear that being selected as an eligible country does not guarantee an MCA grant.A strict assessment has to be made first before a country qualifies for funding.She said development priorities in the proposal could range from an education programme to access to quality healthcare, rural development or improving the business climate.”We invest in programmes that will give MCC and the people of Namibia the returns we all want on this investment – reduced poverty and sustainable economic growth… We will evaluate the proposal by asking, first, whether it identifies Namibia’s obstacles to growth and sets out a strategy for how the proposed programme will tackle those obstacles, and second, whether it reflects the goals of the people of Namibia, not simply one Ministry or sector,” she said.Harrington added that if the MCC was not happy with the proposal, then they would work with the Government to come up with a solution with the people of the country in mind.She also said the amount of the funding – the grant agreement between the Government and the MCC – was not a fixed amount and would be drawn up when a proposal was approved.The largest MCA grant to date was US$300 million for a project in Benin, said Harrington.Harrington and her team have already met with President Hifikepunye Pohamba, Prime Minister Nahas Angula, the National Planning Commission (NPC), and representatives of the private sector among others.The MCC will be in close liaison with the NPC during the whole process.Other countries that have been selected for the MCA include Mozambique, Lesotho, Madagascar, Tanzania, Senegal and Burkina Faso.