Home » Liberia: Finance Minister Ngafuan Clarifies Millennium Challenge Corporation Compact Still a Work in Progress—Contradicts Claims of Approval

Liberia: Finance Minister Ngafuan Clarifies Millennium Challenge Corporation Compact Still a Work in Progress—Contradicts Claims of Approval

Monrovia – Finance and Development Planning Minister Augustine Kpehe Ngafuan has set the record straight regarding Liberia’s standing with the Millennium Challenge Corporation (MCC), stating unequivocally that the country has not yet secured a second compact, and that claims of an approved US$500 million grant are premature and misleading.

By Jaheim Tumu, [email protected], Gerald C. Koinyeneh, [email protected]

Addressing the press in Monrovia, Minister Ngafuan said Liberia is currently under review for reaffirmation, a procedural stage that would re-engage the country with the MCC’s development program. He stressed that Liberia is hopeful but still awaiting the MCC Board’s decision.

“So, this process has been under review. And on, I think, Friday or so, or last week, we received a formal letter from Mrs. Alicia Robinson Morgan, whom we met before when we met the MCC. She is the Deputy Vice President for Compact Operations, informing us that the MCC has proposed Liberia for reaffirmation, and that the Board is meeting sometime next week to consider and possibly do the reaffirmation,” Minister Ngafuan stated.

He explained that the reaffirmation, if approved, would resume Liberia’s compact preparation process that had been paused. “Where we are, given all the indicators, we are hopeful that our country will be approved for reaffirmation. What does that mean? It means that where we were in the process, when the pause button was pressed, it means that the play button will be pressed,” he said.

According to Minister Ngafuan, the MCC process was not canceled but paused due to transitions at the U.S. State Department and within MCC leadership. He noted that it is essential to understand the distinction between eligibility, reaffirmation, and actual compact approval.

“There are three buttons—pause, play, and stop. Some mistook pause for stop. But we are here to say the process is alive,” he said.

Minister Ngafuan emphasized that President Joseph Boakai’s administration has re-engaged vigorously with the MCC since taking office. In January 2025, Minister Ngafuan led a team to meet with MCC Managing Director for Africa Jason Small and Program Officer Ilana Shapiro, following up on Liberia’s eligibility declaration in December 2024.

“The President was not just speaking good English in Washington during the U.S.-Africa Leaders Summit—he was making impactful moves on multiple fronts,” Minister Ngafuan noted. He credited President Boakai’s meeting with MCC CEO Alice Albright as pivotal in reigniting the conversation.

He also praised Deputy Finance Minister for Economic Management Dehpu Y. Zuo and the technical team for sustaining engagement during the paused period. “We win when people in government, the private sector, and everywhere else deliver on the expectations of their people. Our people need roads, more electricity, healthcare, and education – that’s how they win,” he said.

Minister Ngafuan clarified that even if Liberia successfully moves past reaffirmation, the actual amount of the compact will depend on the final scope and design of development projects that emerge from the mandatory Growth Constraints Analysis. 

“The actual value will be based on the cost of projects that respond to real growth challenges,” he said, explaining that the US$500 million being widely cited is merely the maximum threshold MCC might offer—not a confirmed figure.

Minister Ngafuan revealed that preparations have already begun for the next phase of the compact development process. Recruitment is underway for a National Coordinator, Senior Economist, and other key positions, and the Liberian government will initially fund the local MCC office until MCC takes over operational costs. 

“The cream of the cream applied,” he said, suggesting that the country has no shortage of qualified professionals ready to lead this effort.

The news that the MCC Board is reviewing Liberia’s compact comes amid concerns over the country’s performance on the Millennium Challenge Corporation’s FY2025 scorecard (above)—despite passing half of the indicators, Liberia failed in three critical areas: Rule of Law, Fiscal Policy Trade Police.

He also acknowledged that Liberia’s progress must be seen in the context of other MCC-eligible countries. “Sierra Leone is ahead of us. They were declared eligible before us and signed earlier. When someone is ahead of you and the play button is pressed, they will remain ahead. We’re not competing, but we must understand our place in the timeline,” he explained.

Minister Ngafuan urged for unity around national development goals. “When Mount Coffee gives light, it doesn’t ask if you’re CDC or UP. When the road is built, it doesn’t ask your religion or tribe. That’s why we must unite around development,” he said.

He concluded his remarks with a strong call to action: “We have done the groundwork. The President has led from the front. Now, let’s press play and move Liberia forward.”

Despite Minister Ngafuan’s clear statements, over the weekend, a number of top officials and affiliates of the Unity Party-led government posted celebratory messages on social media, creating the impression that the MCC Compact had already been signed and approved.

Information Minister Jerolinmek Matthew Piah was among the first to suggest a finalized deal. Unity Party Secretary General and Liberia Petroleum Refining Company (LPRC) Managing Director Amos Tweh wrote, “July, the remarkable month of good news! We are hopeful that the MCC re-engagement process will get us the approval of a new compact. This is a great breaking news and the nation can’t wait to see to finality. Thank you Mr. President.”

Jefferson Arnold Siaffa, a stalwart of the Unity Party, posted, “The US$500 million MCC Compact na show face. Diggit!”

Talk show host and political activist Henry Pedro Costa weighed in with excitement, saying, “Wow! This is the best news all year! Congratulations uncle Joe! This is proof that Donald Trump really impressed by you. Kudos! Liberia wins.”

Deputy Minister for Press and Public Affairs Daniel O. Sando also commented briefly, writing, “Good News!”

Kelvin D. J. Mattaidi, Assistant Minister of Commerce, posted, “Over 500 millions under the MCC for infrastructure development from the United States government. Good English, English bring more money. Congratulations Prezo.”

Pro-government social media commentator Amb. R. Van Ross wrote, “About half a billion MCC Compact approved for Liberia. Thanks to President Donald J. Trump and the American people.”

These enthusiastic posts, however, have been met with corrections from civil society leaders, economic experts, and politicians who warned against distorting the truth for political gain.

Activist and former UN Youth Delegate Wantoe Teah Wantoe issued a public clarification. “There is no public record of a $500 million grant being approved or disbursed. While discussions may be ongoing diplomatically, official U.S. government and MCC platforms do not confirm any signed Compact,” he said.

Wantoe emphasized the importance of honesty in public communication. “Eligibility does not guarantee that Liberia will receive a compact program. We fully support Liberia receiving this Compact. Every Liberian should be proud of this progress. However, it is our duty to communicate with honesty and clarity.”

Renowned Liberian economist Samuel Jackson also cautioned against political misinformation. “Reaffirming Liberia’s eligibility for the MCC compact does not guarantee an award. We have to do the heavy lifting, and even then, US$500 million is the upper limit, not the actual money we may get. Stop the lies, folks,” Jackson said.

FY 2025: Signs of Progress, But Troubling Indicators Raise Concerns

The news that the MCC Board is reviewing Liberia’s compact comes amid concerns over the country’s performance on the Millennium Challenge Corporation’s FY2025 scorecard—despite passing half of the indicators, Liberia failed in three critical areas: Rule of Law, Fiscal Policy, and Trade Policy, drawing concern from the U.S. government.

FrontPage Africa has learned that Washington has formally conveyed its concerns to the Joseph Boakai administration through the latest MCC scorecard, highlighting shortcomings that could jeopardize future U.S. support.

On Rule of Law, the U.S government cites the administration’s failure to uphold legal standards, contributing to a climate of lawlessness. This has been exemplified by recent events at the Capitol Building and other institutional breakdowns.

Regarding Fiscal Policy, the U.S. government criticized the Boakai administration for lacking a credible fiscal framework to address Liberia’s economic challenges. Concerns include off-budget spending, revenue shortfalls, and inadequate public financial management.

On Trade Policy, the administration was faulted for its failure to articulate a coherent or investor-friendly strategy. The US also referenced troubling allegations of kickbacks from concession companies and the absence of clear guidelines to attract foreign direct investment.

While the passing scorecard offers some hope, analysts say these critical red flags pose a significant challenge for the Boakai administration as it seeks to regain international confidence and move Liberia toward sustainable growth.