The U.S. government’s Millennium Challenge Corporation (MCC) and the Government of Lesotho have launched a new $300 million compact to improve healthcare access and boost the horticulture sector in the southern African nation.
The Health and Horticulture Compact, which also includes $22 million in funding from the Lesotho government, aims to strengthen the country’s primary healthcare system, invest in climate-smart irrigation infrastructure, and support the growth of high-value crop production.
“MCC and Lesotho have enjoyed a 20-year partnership. I am inspired by the Government of Lesotho’s commitment to reach this moment and write a new chapter in our longstanding relationship,” said MCC Deputy Chief Executive Officer Chidi Blyden during the launch event in Lesotho.
The compact includes three main projects:
1. The Health Systems Strengthening Project will work to improve healthcare services, financial management, and data systems.
2. The Market Driven Irrigated Horticulture Project will invest in irrigation infrastructure and support commercial agriculture to boost rural incomes.
3. The Business Environment and Technical Assistance Project will provide grants and services to help high-potential firms, including those owned by women and youth, grow their businesses.
Prime Minister Sam Matekane highlighted the job creation potential of the horticulture project, estimating it could generate 4,000 direct jobs, plus additional indirect employment.
The new compact builds on the success of MCC’s previous $362.5 million grant to Lesotho, which helped fund the Metolong Dam project and expand access to clean water and healthcare services across the country.
“Together, we will embark on the implementation phase of the compact to achieve our shared vision of growing the Lesotho economy with a healthy workforce and sustainable jobs,” Blyden said.
The Millennium Challenge Corporation is a U.S. government foreign aid agency that provides grants to countries that meet standards for good governance and fighting corruption. The new Lesotho Compact represents MCC’s continued commitment to promoting economic growth and poverty reduction in Africa.
