By Wezi Tjaronda WINDHOEK The Millennium Challenge Corporation (MCC) has praised Namibia for putting up a strong proposal that is focused and results-oriented. Namibia submitted its Compact proposal in September 2006 after it became eligible for funding with two other middle-income countries, El Salvador and Cape Verde in 2005. Countries that qualify in the lower-middle income category include those with a per capita income between US$1ÃÆ’Æ‘ÀÃ…ÃÆ”šÃ‚ 576 and US$3ÃÆ’Æ‘ÀÃ…ÃÆ”šÃ‚ 255, while Namibia’s per capita income is US$2ÃÆ’Æ‘ÀÃ…ÃÆ”šÃ‚ 990. The estimated amount of funding available for the Compact is approximately N$2.1ÃÆ’Æ‘ÀÃ…ÃÆ”šÃ‚ billion (US$314ÃÆ’Æ‘ÀÃ…ÃÆ”šÃ‚ million). Key sectors that have been proposed include education, livestock, tourism, indigenous natural products and roads. It is believed that the funds committed through the MCC will significantly fast-track poverty reduction efforts as the programme promises to be the single most important initiative targeting poor communities. At a press conference yesterday, MCC’s managing director for Africa, Darius Mans, said that MCA Namibia has been steadfast in moving swiftly and diligently through the Compact development process and set a notable example for the corporation’s new eligible countries. Since February, the MCC has since sent teams to assess the different sectors under the proposal, and so far due diligence missions have been undertaken to evaluate the livestock and tourism components, monitoring and evaluation, land rights, environmental and social issues and financial management. In comparison to other middle-income countries, Namibia scored favourably on ruling justly, investing in people and encouraging economic freedom that can lead to economic growth. Due diligence will continue until around April/May, after which the MCC will enter into negotiations with the country regarding the terms of the Compact and then prepare a Consultation Memorandum with the MCC Investment Committee. The Compact is then submitted to the MCC Board for approval, signing and implementation. The implementation phase is five years. In the coming months, the MCC will appoint a country director to support the implementation phase of the programme. Penny Akwenye, MCA Namibia National Coordinator, said it was important to ensure that the components of the Compact proposal creates opportunities for the private sector as well. She said that apart from education, the proposal was aimed at unlocking the opportunities for private sector participation such as the tourism sector in which lodges have been proposed. “The 36 lodges are some of the areas in which the private sector can participate and unlock the potential,” she added. Namibia’s Compact seeks to reduce poverty through economic growth and foster economic transformation. The proposed programme will achieve economic growth by increasing the competence of the Namibian workforce in the areas of knowledge, skills and attitude and also by increasing the productivity especially on farm and off-farm enterprises in rural areas. The MCC was formed in 2004 to provide incentives for policy reform by rewarding countries with additional resources that complement those of bilateral US development programmes and other donors. It has so far approved about N$21ÃÆ’Æ‘ÀÃ…ÃÆ”šÃ‚ billion (US$3ÃÆ’Æ‘ÀÃ…ÃÆ”šÃ‚ billion) in assistance to 11 countries, with the remaining 14 countries still waiting to have their Compacts finalized by the MCC.