Authorities at the U.S. Millennium Challenge Corporation (MCC) announced that they will be continuing their two-decade long tradition of providing foreign aid around the world.
Branching out from bilateral talks that started at the U.S.-Africa Leaders Summit in December, between Washington and leaders on the continent, the MCC said its $500 million grant will focus on reducing transportation costs between the Port of Cotonou in Benin and Niger’s capital, Niamey.
Mahmoud Bah, the Deputy CEO at the U.S. agency said their grant is focused on improving roads between the two nations.
“It will also try to address some of the root causes of maintaining road assets,” said Bah.
“In both countries, they’ve committed to improving road maintenance so there will be a policy and institutional reforms around road maintenance, contributions, how the fund is flowing and how those funds are allocated to roads that actually need to be maintained,” he added.
The Deputy CEO also said Benin and Niger will contribute $15 million to the various projects and that they hope that their $500 million investment will build on their previous investments that total $1.1 billion.
“We hope that we will connect our previous investment to this new investment,” said Bah.
“The new port of Benin is effectively a model to the region, thanks to the work we jointly did, and this road piece connecting that port to customers, farmers, clients in Niamey along the corridor from Cotonou is the big story here. I truly believe that regional integration is an essential piece of the entire continent’s development,” added the Deputy CEO.
Speaking on the deal which was signed in December, Benin’s President Patrice Tolon said the agreement will profusely contribute towards boosting Africa's economy.
"If we increase our collaboration among African countries, countries that have small markets, this is a great way to increase the attractiveness of our countries," said Tolon.
Niger’s President Mohamed Bazoum echoed Tolon’s sentiments.
"For a long time, we've considered this to be our natural port," said Bazoum.
"We’ve developed all the necessary instruments to have relationships that make the economy of Niamey viable," he added.