Unlocking $500 Million in Funding -MCC Reaffirms 2nd Compact Eligibility

MONROVIA – Liberia, a nation born from the ideals of freedom and founded by the US Colonization Society, is on the cusp of a major breakthrough. The United States, often seen as Liberia’s foster parent, is poised to extend a helping hand once again, with the Millennium Challenge Corporation (MCC) set to approve a potential $500 million grant to support Liberia’s development agenda. This gesture, development pundits say, underscores America’s enduring commitment to helping Liberia overcome poverty and corruption. Of course, Liberians are celebrating the milestone as a testament to their nation’s progress and promise. Amongst the celebrators is Finance Minister Augustine Kpehe Ngafuan who is lavishly hailing President Joseph Nyuma Boakai’s visionary leadership. The Analyst reports.

Liberia is celebrating a major milestone in its development journey, with Finance Minister Augustine Kpehe Ngafuan hailing President Joseph Nyuma Boakai’s visionary leadership after securing eligibility for a second U.S. Millennium Challenge Corporation (MCC) Compact.

Minister Ngafuan described the achievement as “a national blessing,” attributing it to the President’s leadership, hard work, and commitment of the Liberian people.

“When I got the email around 10:30 p.m., I felt that God loves Liberia,” the Liberian finance minister said.

The MCC Compact is expected to support key areas such as energy access, road infrastructure, and economic transformation, with a potential grant ranging from $350 million to $500 million.

The government aims to increase energy access to 75% within five years, reducing the cost of electricity and boosting economic growth.

“We have a leader who doesn’t talk much but works hard. The Americans saw a credible, competent, visionary government,” Minister Ngafuan said, crediting President Boakai’s administration for the success.

The government will begin formal discussions with MCC officials to finalize project scoping and funding levels, with consultations expected to start immediately.

Minister Ngafuan exclaimed: “This is Liberia’s victory. We worked together across ministries, partners, and the Liberian people. And God loves Liberia.”

He urged citizens to remain patient as the process unfolds.

Speaking to reporters Thursday after receiving an official communication from the MCC’s Head of Compact Operations for Africa late Wednesday night, Minister Ngafuan said the announcement left him “elated” and “ecstatic,” noting that Liberia had “reached a point many thought impossible.”

Minister Ngafuan stressed that the MCC’s investments have direct impact on everyday life particularly through energy expansion, which he called “the engine of the private sector.”

He reminded the public that Liberia’s first MCC Compact in 2015 delivered US$257 million, largely used to rehabilitate the Mount Coffee Hydropower Plant, which today powers parts of Monrovia.

With national energy access still at 33%, the government aims under its newly completed Liberia Energy Compact to increase access to 75% within five years while reducing the cost of electricity.

“If power becomes affordable, businesses become profitable. When businesses get profitable, they expand. When they expand, they hire,” the minister explained.

“This is how development touches the ordinary man in Voinjama or Lougatuo.”

He emphasized that MCC funding comes as grants, not loans, unlike other multilateral financing that increases Liberia’s debt burden.

Though the exact amount of the second compact is yet to be announced, Hon. Ngafuan confirmed consultations begin immediately.

“Some people are saying $300 million, some $500 million. It could be above or below $500 million,” he noted.

“The final figure depends on the projects we agree on in the coming days.”

According to the minister, MCC assessments once again identified energy and road infrastructure as top constraints to growth. Liberia is already aligning its budget to signal these priorities—allocating $100 million to energy and roads from projected revenue increases.

He pointed to improvements in road connectivity, especially in the southeast, as the reason food prices have stabilized and inflation dropped below 5% last month.

“Nobody asks for party ID cards to use roads or to get electricity,” Minister Ngafuan indicated.

“Development is how we unite the country.”

Hon. Ngafuan revealed that Liberia’s progress came despite major shifts in U.S. foreign assistance priorities under President Donald Trump.

The MCC increased its scorecard indicators from 20 to 22 and doubled its “hard hurdles”—corruption and now freedom. Failing either automatically disqualifies a country.

“Liberia passed both hard hurdles and 12 of the 22 indicators,” the minister said proudly.

“Some big countries in our region didn’t pass. Sixteen were dropped. Liberia made it.”

He credited this success to the credibility and negotiating posture of President Boakai’s administration:

“We have a leader who doesn’t talk much but works hard. The Americans saw a credible, competent, visionary government.”

The government he asserted will meet MCC officials today via Zoom to begin formal discussions on project scoping and funding levels.

Hon. Ngafuan urged citizens to remain patient as the process unfolds: “Some challenges we met were not at zero, they were below zero,” the Finance Minister disclosed.

“Getting back to zero takes effort. But we are moving into positive territory.”

He ended with a message of unity and gratitude: “This is Liberia’s victory. We worked together across ministries, partners, and the Liberian people. And God loves Liberia.”