Published: 17 mins ago

Zimbabwe is set to miss out on funding under the United States Millennium Challenge Corporation (MCC) after a new report declared the country ineligible to receive foreign assistance.

The development comes under the Millennium Challenge Act of 2003, which mandates the MCC to publish an annual report identifying countries eligible for Millennium Challenge Account assistance. For fiscal year 2026, Zimbabwe has been excluded from the list of candidate countries due to existing US legal restrictions.

According to the National Archives and Records Administration, the determination was made pursuant to section 7042(j)(2) of the FY 2025 State, Foreign Operations, and Related Programs Appropriations Act (SFOAA). The provision prohibits direct US assistance to Zimbabwe's central government unless the Secretary of State certifies that the country has restored the rule of law, ensured respect for property rights, and guaranteed freedoms of expression, association, and assembly.

"The list of countries determined by the board to be ‘eligible countries' for FY 2026 includes those with which the board will seek to enter into compacts and a justification for such eligibility determination," the report noted.

The MCC compacts are formal agreements designed to reduce poverty and spur economic growth by supporting countries committed to democratic governance, economic freedom, and investment in their people. Candidate countries must also fall below the World Bank's per capita income threshold of US$7 855 for FY 2026.

While Zimbabwe has been excluded, several of its regional counterparts — including Angola, Botswana, Eswatini, Lesotho, Madagascar, Malawi, Mozambique, Namibia, South Africa, and Zambia — are set to benefit from the fund. Other ineligible states under US restrictions include Iran, Venezuela, Eritrea, Burma, and Syria, among others.

The setback comes despite repeated efforts by President Emmerson Mnangagwa's government to normalise relations with Washington. Finance Minister Mthuli Ncube recently led a delegation to the International Monetary Fund/World Bank spring meetings, where Zimbabwe sought funding for infrastructure and power generation projects.

Harare has consistently argued that it is "not an enemy to any country," but its failure to meet Washington's governance benchmarks continues to block access to critical US development support
- Newsday

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