Washington DC – The Republic of Senegal signed a five-year, $540 million compact with the Millennium Challenge Corporation (MCC). The compact is the eleventh-and third largest-to be signed between a sub-Saharan African country and the MCC, which provides assistance to well-governed, low-income countries who develop credible programs for reducing poverty and promoting economic growth.

“Today’s signing is something to celebrate,” said ONE President and CEO David Lane. “It reflects Senegal’s leadership in developing a robust, poverty-reducing program and the shared commitment of Senegal and the U.S. to invest wisely and create economic opportunities in Africa.”

“The MCC compacts allow developing countries to implement programs that are tailored to their unique needs and political landscape,” Lane continued. “They require poor countries to demonstrate their commitment to good governance and sound economic policies as a precondition to increased US investment.”

Senegal’s MCC program is designed to build roads, improve agriculture productivity and food security, and boost rural markets and trade. It focuses on rehabilitating crucial roads in northern and southern Senegal, which is intended to help agricultural communities get their goods to local and international markets and improve access to services like schools and hospitals for rural communities.

The compact will also fund a water and irrigation management project in the Senegal River Valley to increase crop yields. Senegal currently imports 70 percent of its rice, which makes it vulnerable to the dramatic increases in food and rice prices that took place as recently as last year. The irrigation program is designed to increase crop production as a way of improving Senegal’s food security. Investments in irrigation and water management may also help balance the impacts of drought and floods, such as the severe flooding that is occurring in Senegal this week.

According to the MCC’s analysis, Senegal’s MCC compact programs could benefit more than one million people over the five-year life of the compact and more than 1.66 million people over twenty years.

Republic of Senegal President Abdoulaye Wade and U.S. Secretary of State Hillary Clinton presided over the signing at the U.S. Department of State. The compact itself was signed by Senegal Minister of Finance and Economy Abdoulaye Diop and Acting MCC CEO Darius Mans.