Tanzania became eligible for Millennium Challenge Account (MCA) support in November 2005 and became the 23rd country selected to join the Millennium Challenge Corporation (MCC) Programme. The eligibility followed passing the set of criteria to qulify for a grant of $698.1 Millions for the period of five years. The compact agreement between United State of America acting through MCC and the Government of United Republic of Tanzania acting through Ministry Of Finance and Economic Affairs was officially signed by their Excellencies Presidents, George W. Bush of the United State of America and Jakaya Mrisho Kikwete on the United Republic of Tanzania on 17th February 2008 at the State House in Dar Es Salaam, Tanzania.
Based on the Article 36(i) of Constitution of the United Republic of Tanzania, 1977 (CAP. 2), President Jakaya Mrisho Kikwete signed a Government Notice No. 202 of 21st September , 2007 to establish MCA - Tanzania as a legal accountable entity that is responsible for the management of the implementation of the projects and activities funded by Millennium Challenge Corporation (MCC).