Liberia is one step away from securing its second Millennium Challenge Corporation (MCC) compact, after being named among 87 candidate countries forwarded to the U.S. Congress for approval to receive fiscal year 2026 support. The potential compact marks a significant opportunity to accelerate development, strengthen governance, and reduce poverty in the country.
The MCC, an independent U.S. government agency established in 2004, provides time-limited grants to countries that meet strict standards for good governance, anti-corruption measures, and respect for democratic rights. Compact funding is awarded through a rigorous, competitive, and transparent process designed to promote economic growth and reduce poverty.
Liberia’s inclusion comes as Ghana, Guinea, and Burkina Faso were deemed ineligible for compact support. Ghana’s exclusion is linked to a debt default restriction under Section 7012 of the FY 2025 SFOAA, with a final decision pending the completion of a debt restructuring agreement. Guinea and Burkina Faso were ruled ineligible due to military coup restrictions.
The announcement follows the release of MCC’s FY 2025 country scorecards on November 21, 2024. These scorecards, a key component in determining eligibility, assess countries using 20 independent, third-party indicators measuring policy performance in economic freedom, rule of law, and investing in people. Of the 76 countries scored, 26 passed while 50 did not. All scorecards are publicly available on MCC’s website.
To qualify for compact funding, countries must pass at least 10 of the 20 indicators, including MCC’s “hard hurdles” – the Political Rights or Civil Liberties indicator and the Control of Corruption indicator. Countries that meet these standards are then considered by MCC’s Board of Directors, which annually selects new partners based on policy performance, potential for poverty reduction, and funding availability.
MCC officials emphasize that the compact selection process encourages countries to implement reforms even before a single dollar of program funding is spent — a phenomenon known as “The MCC Effect.” Countries around the world use the scorecard as a roadmap to improve governance, transparency, and economic performance, creating a measurable impact on citizens’ well-being.
A November 20, 2024, MCC report highlights that countries moving from failing to passing the scorecard can lift approximately 1.9 million people out of extreme poverty. This demonstrates that governance and policy reforms associated with MCC eligibility can generate an impact comparable to a US$1.2 trillion surge in economic growth—a level often requiring years to achieve.
Liberia’s first MCC compact, implemented several years ago, focused on infrastructure, governance, and economic development. The country’s current progress on policy reforms and institutional strengthening has positioned it favorably for a second compact, which could further enhance development efforts, expand economic opportunities, and deepen anti-corruption initiatives.
With Congress now set to review Liberia’s eligibility, anticipation is high that the country may soon secure its second MCC compact—potentially unlocking transformative benefits for Liberians and further cementing the nation’s commitment to good governance, economic growth, and poverty reduction.
