MONROVIA - Liberia's Minister of Finance and Development Planning, Augustine K. Ngafuan, has clarified that Liberia has not yet secured a second Millennium Challenge Corporation (MCC) Compact, despite widespread jubilation following positive signals. Speaking during a press conference in Monrovia on Monday, Minister Ngafuan said that while significant progress has been made, a final decision from the MCC Board of Directors is expected early next week.
"Let me be clear," Ngafuan said. "Liberia has not yet won the second MCC Compact. The Board will be meeting next week to decide whether to reaffirm Liberia's eligibility for compact development."
Ngafuan's remarks come amid growing public expectations following Liberia's December 2023 designation for eligibility by the MCC, a U.S. foreign assistance agency that provides large-scale grants to countries demonstrating a commitment to good governance, economic freedom, and investing in their citizens. The first MCC Compact, worth $257 million, funded the rehabilitation of the Mount Coffee Hydroelectric Plant and supported road maintenance and energy sector reform.
Liberia Still in the Negotiation Phase
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According to Minister Ngafuan, the process toward securing a second compact is complex and ongoing. He detailed a series of high-level engagements involving President Joseph Nyuma Boakai and Liberian fiscal authorities, aimed at reinforcing Liberia's commitment to transparent governance and economic reform.
President Boakai, even before taking office, visited Washington, D.C. in December 2023, where he met with the then MCC Chief Executive Officer, Alice Albright, to present his development vision for Liberia. Since then, Liberian authorities have maintained sustained engagement with the MCC, the U.S. State Department, Treasury, and even the White House's faith-based office.
"We've not been idle," Ngafuan noted. "We've made the case for Liberia at every level, technically and diplomatically. Liberia's team, including my predecessor Hon. Boima Kamara and myself, has worked hard to keep the country's file active and favorable."
Board Vote Pending - But Prospects Remain Strong
A recent letter from Alicia Robinson-Morgan, MCC's Deputy Vice President for Compact Operations, confirmed that the MCC has proposed Liberia for reaffirmation and that the board is scheduled to meet next week. If approved, the decision will re-launch the compact development process that was paused during the last administration.
"The indicators look good," Ngafuan said. "Liberia passed key components of the MCC scorecard, and the board's mood seems positive."
Compact Development and Growth Constraints Analysis Underway
Minister Ngafuan explained that compact development begins with a Growth Constraints Analysis, a collaborative study between the MCC and the recipient country to identify binding constraints to economic growth. This study will help determine which sectors the new compact should focus on.
In the first compact, Liberia's lack of electricity, poor roads, and limited access to finance were identified as major constraints, leading to targeted investments. A similar process is now underway, this time aligned with the country's National Development Plan, which has an estimated financing gap of $8.34 billion.
"MCC money should be focused. It is catalytic," he said.
The Ministry of Finance & Development Planning has already begun the process of hiring Liberians to lead the MCC Liberia office, including positions for a national coordinator, senior economist, private sector specialist, gender expert, and environmental specialist. However, the process was paused after the Trump administration took office and decided to conduct a review of the MCC. According to Minister Ngafuan, the State Department has resumed the activities of the MCC.
No Confirmed Grant Amount Yet
He cautioned against speculation regarding the size of the second compact. "Some people are floating figures. Let me be clear, we do not yet know the final amount. It could be below or above what's being speculated," he said.
He noted that the final grant size would depend on the scope and cost of selected projects following the constraints analysis and compact design.
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Diplomatic and Technical Engagements Continue
The minister stated that Liberia has maintained sustained and strategic engagement with U.S. authorities at all levels. Following President Boakai's visit to Washington, Ngafuan himself led a delegation to the MCC to meet with the new compact operations team headed by Mr. Suhan Dasgupta. He also engaged with the U.S. Treasury and State Department, facilitating connections between U.S. officials and Liberia's education and health ministries to discuss potential support outside the MCC envelope.
"The President was not just talking good English in Washington, he was making good moves," he quipped.
Ngafuan also disclosed that U.S. Ambassadors to Liberia, Michael McCarthy and his successor, have expressed optimism about the process. "The outgoing ambassador is upbeat that he's leaving at a time when the MCC file for Liberia is still very much alive," he said.
