MCC Compact in Sight -Ngafuan Says It’s Possible Passing Half of 22 Key Indicators

MONROVIA – Liberia’s Finance Minister Augustine Kpehe Ngafuan is fighting tooth and nail, marked by his appearance on state-run ELBC to speak to the nation, as a way of not only making the point that his ruling Unity Party government is once again able to achieve the US Government’s much-coveted Millennium Challenge Corporation (MCC) as it did in its first ruling term—something that the erstwhile Coalition for Democratic Change was unable to get throughout its 6-year reign despite efforts—but also to fend off opposition doubts and misgivings that the Unity Party cannot qualify for the Pact again due to the current government’s policies and deeds that seemingly contravene most of the benchmarks of the MCC, including corruption, rule of law, amongst other things. As news emerged that the UP government has already passed 12 of 22 benchmarks, sparking lively debates in the public space, the Finance Minister saw it as an opportune moment to appear on national radio to address the issue, set the record straight, and provide assurances that the Compact is within reach. As the Analyst reports, Minister Ngafuan also spoke to issues regarding the controversial $1.2b national budget.

Liberia’s Minister of Finance and Development Planning, Augustine Kpehe Ngafuan, says the country is “on track” for a second Millennium Challenge Corporation (MCC) Compact, following Liberia’s successful performance on the 2025 MCC scorecard.

Appearing Thursday morning on the Super Morning Show on the Liberia Broadcasting Corporation (ELBC), Minister Ngafuan described Liberia’s passing of the MCC scorecard as “a strong signal of renewed confidence” in the country’s governance, fiscal discipline, and reform efforts.

“We are happy that we have made the pass,” Minister Ngafuan said. “The minimum you need to pass is half of the indicators, and Liberia has crossed that benchmark. This puts us on the path of consideration for a second compact.”

A number of opposition elements and activists believe the Unity Party, which got more than a quarter of billion dollars under the Compact in its first ruling epoch, would be unable to achieve the feat again because, according to them, national and international circumstances have changed, and the ruling administration has in its official closet a horde of excesses bordering rule of law, official corruption, that could ward off the opportunity.

But the Finance Minister explained that under the MCC’s revised framework, countries must pass at least half of the 22 indicators, but success in Control of Corruption and Political Rights/Freedom remains mandatory.

“Even if you pass 20 indicators and fail those two, you fail overall,” he emphasized. “They are necessary conditions for passing.”

Liberia has passed 12 of the 22 indicators, and Minister Ngafuan is confident that the country will meet the necessary conditions for a second compact.

The Minister highlighted recent high-level engagements with U.S. officials, including meetings during President Joseph Boakai’s visit to Washington and the World Bank/IMF Annual Meetings.

‘Bumpy Road’ to Progress

Minister Ngafuan acknowledged that Liberia’s path toward the second compact had not been smooth. He recalled that while Liberia was declared eligible in December 2024, the transition in the U.S. administration earlier this year temporarily paused many MCC and USAID programs.

“The entire MCC team was put on hold,” he said. “Almost all USAID projects—except five out of twenty-nine—were paused, affecting over US$300 million in aid support.”

Despite those setbacks, Liberia remained under consideration while 16 other countries were dropped from the process.

Renewed U.S. Engagements

The Minister highlighted recent high-level engagements with U.S. officials, including meetings during President Joseph Boakai’s visit to Washington and the World Bank/IMF Annual Meetings.

“We met with the MCC team, the U.S. Assistant Secretary of the Treasury, and others,” Minister Ngafuan said. “Those engagements helped resuscitate our relationship and paved the way for the MCC delegation’s visit to Monrovia in September.”

He disclosed that the MCC Board will meet in December 2025 to decide whether to reaffirm Liberia’s eligibility and announce potential funding for the second compact.

Focus Areas: Energy and Infrastructure

If approved, the Finance Minister said, the next compact will focus on energy and infrastructure, the two biggest constraints to Liberia’s economic growth.

“Energy remains the number one constraint,” he said. “When businesses spend more on generator fuel, profits are reduced. Lower energy costs mean more growth, more jobs, and more opportunities.”

He also cited ongoing road projects such as the Ganta–Harper Highway as examples of continued infrastructure investment.

“The road to development begins with the development of roads,” he said. “We are not just talking; we are taking action.”

Finance Minister Ngafuan Defends 2026 Budget: “We’ve Crossed the Billion-Dollar Threshold”

The MCC Board will meet in December 2025 to decide whether to reaffirm Liberia’s eligibility and announce potential funding for the second compact.

If approved, the next compact will focus on energy and infrastructure, the two biggest constraints to Liberia’s economic growth.

Defending $1.2b Budget

During the same ELBC appearance, Minister Ngafuan addressed public questions surrounding the 2026 National Budget, which projects over US$1.2 billion in total revenue —the largest in Liberia’s history.

 “When we unveil the budget and people see billions, some begin to doubt or criticize—that’s not wrong,” he said. “But we’ve proven that doubters can doubt and critics can criticize; that hasn’t stopped us from hitting our targets. We are meticulous people.”

Minister Ngafuan also defended the government’s record US$1.2 billion 2026 national budget, saying it is tied to President Boakai’s ARREST Agenda for Inclusive Development.

The budget focuses on key sectors, including agriculture, roads, reconciliation, education, sanitation, and tourism, with allocations for road development, energy, and infrastructure projects.

The Minister emphasized the importance of fiscal discipline and credibility, cautioning against inflating the budget for political reasons.

“We cannot compromise the credibility of the budget just to please anyone,” he said. “If we simply inflated it to US$2 billion, no one would believe our numbers anymore.”

Record Revenue and Economic Expansion

Minister Ngafuan announced that Liberia generated nearly US$700 million in domestic revenue in 2024, the highest ever recorded, thanks to reforms at the Liberia Revenue Authority (LRA) and ongoing efforts to digitize tax collection.

“We are digitizing processes, improving efficiency, and expanding LRA operations,” he noted. “We’re giving them logistics, reaching new areas, and closing tax loopholes.”

He projected a 5.4% GDP growth for 2026, crediting continued structural and fiscal reforms.

The Minister said the 2026 revenue envelope includes a one-time US$200 million signature bonus from a deal with Mittal, but even without that, “organic domestic revenue surpasses US$1 billion.”

“Even when you take off the one-time injection, you’re left with US$1.011 billion,” he said. “We have crossed the billion-dollar threshold, and we do not intend to take backslides.”

Budget Aligned with National Development Plan

Minister Ngafuan emphasized that the budget is tied to President Boakai’s ARREST Agenda for Inclusive Development, which focuses on Agriculture, Roads, Reconciliation, Education, Sanitation, and Tourism.

“We’ve anchored the budget around the national development plan, costed at US$8.34 billion,” he said. “This year, domestic revenue represents 94% of the budget — external funding is only 6%. That shows Liberia’s growing self-reliance.”

Under the 2026 National Budget, key sector allocations include US$50 million for road development—particularly along the Monrovia–Sierra Leone highway —and another US$50 million for the Liberia Electricity Corporation (LEC) to implement a smart metering project. Additionally, nearly US$14 million is earmarked for county and district development funds across Nimba, Grand Bassa, and Bomi, while US$6 million is allocated to the University of Liberia, alongside full government support for ELWA Hospital staff and the completion of the new Redemption Hospital by early 2026; the Judiciary will also receive an extra US$8 million for new court construction and the digitization of judicial records.

Fiscal Discipline and Credibility

Minister Ngafuan cautioned lawmakers against inflating the budget for political reasons, stressing that credibility matters more than size.

“We cannot compromise the credibility of the budget just to please anyone,” he said. “If we simply inflated it to US$2 billion, no one would believe our numbers anymore.”

He asserted that the 2026 budget represents more than figures, it’s a roadmap for growth and self-reliance.

“At the end of the day, the budget is a plan — a plan that says how we will raise and spend money for the Liberian people,” he said. “We are confident we’ll meet our targets and continue this path of growth.”

The Millennium Challenge Corporation (MCC) is a U.S. government agency that provides grant funding to countries that demonstrate strong performance in good governance, economic freedom, and investment in people.

Liberia signed its first MCC Compact in 2015, which focused primarily on energy and road infrastructure. The second compact, if approved, could begin implementation in early 2026, prioritizing infrastructure, private sector competitiveness, and governance reforms.