Madagascar is to receive a total of 110 million US dollars, as the contribution of the United States towards a four-year project aimed at reducing poverty by expanding the property rights for the country's citizens, expanding banking and financial sectors and promoting investment in agriculture.
A statement by the United States Information Service (USIS) in Accra on Tuesday said Madagascar was the first country to benefit from the Bush Administration's Millennium Challenge Account (MCA), which was a supplementary foreign aid programme that rewarded countries that demonstrated commitment to good governance, promoted economic growth and invested in improving the lives of its people.
The agreement known as the Compact was based on a proposal submitted by Madagascar reflecting the priorities of its people, the statement said.
The Millennium Challenge Corporation (MCC), which oversees the running of the Account and the Malagasy, had worked as partners to develop a result-based programme focused on poverty reduction through sustainable economic growth.
The statement said the MCC Board of Directors had earlier met to approve the Compact and then notified Congress of the decision as required by law.
It said the two countries would sign the Compact next month.