Finance Minister Augustine Kpehe Ngafuan has officially confirmed that Liberia received an official communication from the Governing Board of the Millennium Challenge Corporation (MCC), reaffirming a compact for the West African nation. The potential compact award, an estimated US$500 million, is expected to mark a major milestone in the nation’s development journey.
Back on Track:
The announcement comes after the MCC Board of Directors approved Liberia’s eligibility in December 2024. Speaking at a press conference in Monrovia, Minister Ngafuan expressed optimism and pride in the government’s achievement.
“The President was not just speaking good English in Washington—he was making strategic moves on multiple fronts,” Ngafuan said. “After months of review, we received a formal letter from Ms. Alicia Robinson-Morgan, MCC’s Managing Director for Africa, confirming that the MCC Board has approved Liberia’s reaffirmation for the compact.”
Ngafuan noted that the compact process has been on pause due to the transition of the U.S. government and the decision of the Trump-led administration to review foreign aid, but that Liberia is now “moving from pause to play.”
While the exact amount could vary slightly, the second compact grant for any country is estimated to be around US$500 million, depending on final project designs, constraints analysis, and agreements.
“All indicators are now positive,” Ngafuan continued. “This is a strong signal that Liberia is back on track. We’ll provide further details on the implementation strategy once the compact is signed and the funding becomes available.”
A Return to Eligibility:
Liberia’s requalification for the second MCC Compact was first announced in December 2024, following the country’s improved performance on the MCC Scorecard—a tool used to assess good governance, economic freedom, fiscal prudence, and investment in people.
President Joseph Nyuma Boakai announced Liberia’s eligibility during a national address at the Executive Mansion on December 18, 2024. The country passed at least 10 out of 20 key indicators, including areas such as rule of law, fiscal policy, trade policy, and anti-corruption measures.
Government Welcomes Reaffirmation:
Information Minister Jerolinmek Piah welcomed the MCC Board’s decision to reaffirm Liberia’s eligibility and consideration, calling it a reflection of the Boakai administration’s commitment to good governance, transparency, and reform.
“This compact represents more than just money—it’s a symbol of renewed international confidence in Liberia,” Piah said. “It also shows that the hard work being done to restore credibility and improve governance is paying off.”
What the Grant Means for Liberia?
While the specific areas of investment will be finalized in consultation with MCC experts and a local team of technicians, the compact is expected to target critical sectors such as energy, road infrastructure, education, and public sector reform—all of which are core to President Boakai’s ARREST agenda (Agriculture, Roads, Rule of Law, Education, Sanitation, and Tourism).
Minister Ngafuan noted that a full technical team from the MCC is expected in Liberia soon to begin designing implementation plans and performance benchmarks. “This is not just about receiving funds,” he emphasized. “It’s about using those funds effectively to drive long-term development.”
A Historic Moment:
Liberia previously received an MCC Compact grant of US$257 million in 2015, focused primarily on energy and road infrastructure. This second compact, if fully utilized, would bring MCC’s total investment in Liberia to over US$750 million.
As the country celebrates this achievement, expectations are high that the funds will significantly boost Liberia’s development goals and improve the lives of ordinary citizens.
“This is a victory for all Liberians,” said Minister Ngafuan. “We now have a duty to make the most of it.”
This is a developing story. More details will follow as the compact moves into the development, agreement, and implementation phases.
