MONROVIA — Liberia has gained eligibility to negotiate a second U.S. Millennium Challenge Corporation (MCC) Compact, a significant policy win that places the country among a select few advancing under one of America's most challenging foreign aid programs.
The MCC's decision, officially communicated to Finance Minister Augustine Kpehe Ngafuan late Wednesday, positions Liberia to receive hundreds of millions of dollars in potential grant funding aimed at energy and road infrastructure, the key issues repeatedly identified in MCC growth diagnostics.
The approval is widely seen as an important vote of confidence in Liberia's governance trajectory, particularly after the MCC toughened its eligibility rules, increasing its scorecard indicators from 20 to 22 and doubling its "hard hurdles" to include both corruption control and respect for freedom.
"Sixteen countries were dropped this year. Some big countries in our region didn't make it. Liberia did," Ngafuan told reporters Thursday, describing the news as "a national blessing" and crediting President Joseph Nyuma Boakai's administration for restoring credibility in the eyes of U.S. officials.
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A High-Stakes Opportunity for Liberia's Energy Sector
While the size of the second compact remains under negotiation, MCC compacts typically range between US$300 million and US$600 million. Liberia's first compact delivered US$257 million in 2015, primarily used to rehabilitate the Mount Coffee Hydropower Plant, which today supplies much of Monrovia.
Ngafuan said the government is preparing to argue for a compact strongly focused on energy, describing electricity as "the engine of the private sector." Liberia's newly completed Energy Compact targets a jump in nationwide access from 33% to 75% within five years while pushing down electricity costs that remain among the highest in West Africa.
"If power becomes affordable, businesses become profitable. When businesses expand, they hire," he said.
"This is how development reaches the ordinary citizen -- whether in Voinjama or Lougatuo."
Roads Also in Focus as MCC Flags Binding Constraints
MCC's updated assessments again identified roads and energy as Liberia's most significant barriers to economic growth. Ngafuan said the government has already begun aligning its national budget with these priorities, committing US$100 million to both sectors combined, reflecting higher projected revenues.
He argued that recent improvements in southeastern road connectivity have contributed to stabilizing food prices and helped push inflation below 5% last month -- one of the lowest levels in years.
"Nobody asks for party ID cards to use roads or electricity," he said.
"Development is how we unite the country."
A Crucial Test Passed Amid Shifting U.S. Aid Policy
Ngafuan stressed that Liberia's progress came despite stricter MCC criteria adopted during Donald Trump's return to the U.S. presidency. MCC grants -- unlike loans from other development partners -- do not add to Liberia's debt burden, a key advantage for a country balancing fiscal pressures.
Liberia passed both hard hurdles and 12 of the 22 indicators on this year's scorecard, including improvements in governance benchmarks that had slipped in previous years.
Ngafuan said MCC officials were impressed with the professionalism and negotiating posture of the Boakai administration.
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"We have a leader who doesn't talk much but works hard. The Americans saw a credible, competent, visionary government," he noted.
The government is scheduled to meet MCC executives today via Zoom to begin scoping discussions that will determine the compact's project slate and eventual dollar value.
Ngafuan cautioned that the process will take time and urged citizens to remain patient.
"Some challenges we met were not at zero -- they were below zero," he said.
"Getting back to zero takes effort. But Liberia is moving into positive territory."
He closed with an appeal for unity.
"This is Liberia's victory. We worked together across ministries, partners, and the Liberian people. And God loves Liberia."
