ZIMBABWE is set to miss out on funding under the United States Millennium Challenge after a report indicated that the country is ineligible to receive foreign assistance, NewsDay reports.
The Millennium Challenge Act of 2003 requires the Millennium Challenge Corporation to publish a report that identifies countries that are “candidates” for the Millennium Challenge Account assistance during fiscal year 2026.
The Act authorises the provision of assistance through the Millennium Challenge Corporation (MCC) for countries that enter into a Millennium Challenge Compact with the United States to support policies and programmes that advance the progress of such countries to achieve lasting economic growth.
The Act also requires MCC to take a number of steps in selecting countries which it will seek to enter into a compact with, including determining the countries that will be eligible for support in the 2026 fiscal year based on a country’s demonstrated commitment to just and democratic governance, economic freedom and investment in its people.
To enter into a compact is to establish a formal, legally binding agreement such as an interstate compact between US states or a formal agreement between two or more governments or people.
This process involves the negotiation and formal adoption of reciprocal laws or agreements that create rights and obligations for the parties involved, subject to any required consent, such as from the US Congress for interstate compacts.
The compact also affords beneficiary countries the opportunity to reduce poverty and generate economic growth in the country and the availability of funds to MCC.
“These steps include the submission to the congressional committees specified in the Act and publication in the federal register of reports on the following: The countries that are ‘candidate countries’ for FY 2026 based on their per capita income levels and their eligibility to receive assistance under US law and countries that would be candidate countries, but for specified legal prohibitions on assistance (section 608(a) of the Act),” the report from the National Archives and Records Administration said.
“The list of countries determined by the board to be ‘eligible countries’ for FY 2026, identification of such countries with which the board will seek to enter into compacts and a justification for such eligibility determination and selection for compact negotiation (section 608(d) of the Act).”
It further indicated that Zimbabwe is ineligible to receive foreign assistance, including pursuant to section 7042(j)(2) of the FY 2025 SFOAA, “prohibiting assistance for the central government of Zimbabwe unless the Secretary of State certifies and reports to Congress that the rule of law has been restored, including respect for ownership and title to property and freedoms of expression, association and assembly.”
Other countries affected by the section of the law include Azerbaijan, Burkina Faso, Burma, Eritrea, Ghana, Guinea, Haiti, Iran, Mali, Nicaragua, Niger, South Sudan, Sri Lanka, Sudan, Syria and Venezuela.
“Countries identified above as candidate countries, as well as countries that would be considered candidate countries but for the applicability of legal provisions that prohibit US economic assistance, may be the subject of future statutory restrictions or determinations or changed country circumstances, that affect their legal eligibility for assistance under part I of the Foreign Assistance Act by reason of application of the Foreign Assistance Act or any other provision of law for FY 2026,” the US said.
All of Zimbabwe’s southern African counterparts are set to benefit from the fund, including Angola, Botswana, Eswatini, Lesotho, Madagascar, Malawi, Mozambique, Namibia, South Africa and Zambia.
According to the report, the Act requires the identification of all countries that are candidate countries for purposes of eligibility for MCC compact assistance for FY 2026 and the identification of all countries that would be candidate countries for purposes of eligibility for MCC compact assistance.
Eligible countries, according to law, should have a per capita income that is not greater than the World Bank’s threshold for initiating the International Bank for Reconstruction and Development graduation process for such fiscal year (US$7 855 gross national income per capita for FY 2026).
“Countries that would be considered candidate countries for purposes of eligibility for MCC compact assistance for FY 2026 but are ineligible to receive United States economic assistance under part I of the Foreign Assistance Act by reason of the application of any provision of the Foreign Assistance Act or any other provision of law are listed below,” the US government said.
President Emmerson Mnangagwa’s government has, on several occasions approached the US government for assistance on the mantra that it is not an enemy to any country.
Finance, Economic Development and Investment Promotion minister Mthuli Ncube led a delegation of ministers from the Zimbabwean government to the International Monetary Fund/World Bank spring meetings seeking funding for various government projects from the United States government including power generation, among others.