June 27, Washington DC: The Millenium Challenge Corporation has approved a five year $362.6 million grant to reduce poverty and increase economic growth in Lesotho.

The Millenium Challenge Corporation (MCC) is a United States government corporation designed to work with some of the poorest countries in the world. It is based on the principle that aid is most effective when it reinforces good governance, economic freedom and investments in people that promote economic growth and elimination of extreme poverty.

Lesotho’s Compact with the MCC is focused on improving the provision of water supplies for industrial and domestic use, improving health outcomes and productivity and removing barriers to foreign and local private sector investment.

$164 million is ear-marked for the Water Sector Project; $122.4 for the Health Sector Project; and $36.1 million for Private Sector Development Project.

The project also includes approximately $40 million for administration, management, auditing, monitoring and evaluation and environmental and social oversight.