On August 21, 2025, the Board of Directors of the Millennium Challenge Corporation (MCC) Board of Directors met to select new countries for compact grants, evaluate updates to MCC’s portfolio, and affirm the agency’s model for delivering results for the American people.
At the meeting in Washington D.C., the Board of MCC postponed its decision on Liberia’s eligibility for a second Compact grant until December 2025, while selecting a South Pacific country, Fiji, as an eligible partner to develop a compact.
“MCC’s Board selected Fiji as eligible to develop a compact. A close ally and partner on shared priorities, Fiji also represents an emerging economic hub for American businesses. The Board also approved Tonga for a threshold program, creating new opportunities to strengthen ties with another key U.S. partner in the Pacific,” an MCC press statement, dated August 22, stated.
The latest postponement, while it does not suggest a denial or disqualification, places Liberia in a tight spot to wait for another four months amid rising prices and heightening public demand for immediate reforms including job creation and access to basic social services.
In a letter dated Friday, August 22, 2025 addressed to Liberia’s Minister of Finance & Development Planning Augustine Kpehe Ngafuan, MCC Acting Vice President for the Department of Compact Operations, Mr. Jason Small, informed the Minister that the “MCC’s continuing engagement on development of a Compact with Liberia will focus on areas that can inform the Board’s December deliberations. As a next step, MCC will work with you to identify sectors that a Compact could focus on to support economic growth in Liberia while offering opportunities for US business engagements and other mutual benefits.”
Minister Ngafuan, speaking on behalf of President Joseph Nyuma Boakai, welcomed the update and expressed appreciation to the U.S. government according to a press release issued by the Ministry of Finance.
“In response, Minister Ngafuan thanked Mr. Small for the update and extended President Boakai and the Liberian government’s deep appreciation to the MCC Management and the US government for the strong support to Liberia’s development. Minister Ngafuan heartily welcomed the MCC’s decision to field a team to Liberia to work with the Liberian government to identify.”
Uncertainty and Political Consequences: How long does it take to develop a compact?
According to the MCC, it takes a partner country two years to develop a successful compact for financing and implementation. This means that if Liberia is selected to develop a second compact in December 2025, the development of any compact document, including the Constraints Analysis, would go up to the end of 2027.
For many political pundits and economic analysts, this could be largely late for the government to deliver on any tangible development project for the people, considering that the ruling party would have little time for implementation before the 2029 elections.
