MCC Compact in Sight -Ngafuan Says Liberia Notified of Possible Approval

MONROVIA – It seems good news is in the offing for Liberia. The United States’ Millennium Challenge Corporation’s compact is a stone-throw away; courtesy of Liberia’s Finance and Economic Planning Minister Augustine Kpehe Ngafuan. The support is a five-year agreement between MCC and an eligible country to fund specific programs targeted at reducing poverty and stimulating economic growth. But it is not without strains. The recipient country must have satisfied key indicators in three major categories: investing in people, ruling justly, and economic freedom. It is not clear for now how much the Government of Liberia, since the last US$257m compact acquired, has scored to win the second. What is however clear is that the Government of Liberia has broken the highly welcoming news and the country is happy, as The Analyst reports.  

Mrs. Alicia Robinson Morgan, MCC’s Vice President for Compact Operations, has reportedly formally notified the Liberian government that the MCC Board which will be meeting early next week would consider reaffirming Liberia’s eligibility for the country’s second compact.

It is not known yet what the value of the compact would be, but the Minister of Finance and Development Planning of Liberia, Augustine Kpehe Ngafuah, said during a major press conference Monday that Liberia is in the advanced stages of securing a second compact from the United States Millennium Challenge Corporation (MCC).

This development, the Minister said, could pave the way for transformative investments in the country’s infrastructure and economic growth.

Minister Ngafuan described Liberia’s eligibility for a second MCC compact as a “milestone achievement,” emphasizing the broad-based effort—both domestically and abroad—helped bring Liberia to this stage.

Former ruling Coalition for Democratic Change (CDC) government reportedly fought particularly hard to secure the compact during its six-year term, but barely missed out, as it only made progressive passes in the long list of rather tough criteria set—a situation sources of the government attributed to COVID-19 and negative political publications from the country.

Speaking to the media yesterday, Ngaguan said: “When President Boakai took office in December 2023, one of his first international engagements was with key U.S. government agencies, including the MCC.

He said the historic visit made a strong impression and set the tone for Liberia’s re-engagement with critical development partners.

Second Chance at a Compact

The first MCC compact, worth $257 million, significantly rehabilitated the Mount Coffee Hydropower Plant, improved water and sanitation services, and supported power sector reforms. Liberia is now preparing for the development of a second compact, following its selection for eligibility by the MCC Board in December 2024.

Many critics voiced their displeasure about how the first 2-term Unity Party regime (2006 – 2018) must have misused the over a quarter of billion dollar, with some arguing that it was a missed opportunity by Liberia, which could have built a completely new hydropower plant than refurbishing the war-ruined Mount Coffee Dam, amongst other things. 

But further explaining how the second compact was made possible, Ngafuan explained that the process includes conducting a “Growth Constraints Analysis” to identify key barriers to Liberia’s economic development.

This analysis, he said, would be the foundation for crafting compact projects that are both catalytic and focused.

“This is not just about aid; it’s about targeted, strategic investment in areas that will spur growth,” the minister said.

He clarified that while figures are circulating in the public about the potential size of the compact, no official amount has been determined.

“The National Development Plan calls for $8.34 billion in total investments,” the Finance Minister opined. “MCC support won’t cover all of that, but it will play a major role. Whether the amount is more or less than what people are speculating, what matters is how impactful it will be.”

Ngafuan also revealed that Liberia has already begun recruiting key technical personnel—such as economists, environmental specialists, and gender experts—for the local MCC implementation unit.

“For just two positions, we received 170 applications from Liberians,” he divulged. “That shows strong local interest and capacity. We ensured transparency in the hiring process by involving anti-corruption and civil society bodies.”

Minister Ngafuan addressed concerns over recent delays, noting that the process was temporarily paused due to internal reviews within the U.S. government, not due to any failure on Liberia’s part.

“There were interpretations that the process had stopped, but it was just on pause due to transitions in the U.S. administration,” he explained. “We continued to engage on all levels—economically, diplomatically, and strategically.”

He confirmed that MCC’s Vice President for Compact Operations, Mrs. Alicia Robinson Morgan, has formally notified the Liberian government that the MCC Board is meeting early next week to consider reaffirming Liberia’s eligibility.

Broad-Based Engagement

Minister Ngafuan praised the efforts of President Boakai, the Liberian economic team, and diplomatic corps for their coordinated outreach to various U.S. government departments including the State Department, Treasury, and the White House.

“This is a government-wide, nation-wide effort. Liberia’s case was unanimously approved last year. Not one board member objected. That speaks volumes,” he further asserted.

While Liberia awaits final reaffirmation by the MCC board, Minister Ngafuan expressed strong optimism, adding, “All indicators are positive for our country. Next week we anticipate good news. This is Liberia’s moment to act together, united in development.”

The second compact, if approved, could be another significant chapter in Liberia’s ongoing post-war recovery and modernization effort.