Finance and Development Planning Minister Augustine Kpehe Ngafuan has assured the Liberian public that the country is firmly on track to secure a reaffirmation of its eligibility for a second compact under the Millennium Challenge Corporation (MCC).
Speaking at a major press briefing held on Monday in the Ministry of Finance’s 10th floor conference room, Minister Ngafuan provided a comprehensive update on the status of Liberia’s engagement with the MCC, citing significant diplomatic and technical progress and expressing optimism for the board’s upcoming decision.
However, the Finance Minister’s response came directly following rumors on social media and platforms that the MCC has reaffirmed $500 million grant approval for Liberia after temporary hold.
In December 2024, MCC’s Board of Directors declared Liberia “eligible to develop a compact” in recognition of its improved performance on the MCC scorecard and ongoing governance reforms efforts that had stalled during the government transition.
Speaking late Sunday evening, Information Minister Jerolinmek Piah stated that MCC has now officially reassured the Liberian government of the grant’s approval and forthcoming disbursement.
For the second compact, while the exact finalized figures have yet to be made public, Reuters and local sources have broadly indicated possible funding of up to $500 million, depending on negotiated priorities and the compact’s final design.
“We are very hopeful,” Ngafuan said. “Liberia’s case will be before the MCC Board next week, and the signals we’re getting are strong. This is a national effort, and we are nearing the point where the pause button will be replaced by the play button.”
Ngafuan explained that following President Joseph Nyuma Boakai’s election in December 2023, the new administration made re-engagement with the MCC a top priority. President Boakai’s early visit to Washington, D.C., before his inauguration included a crucial stop at the MCC headquarters, where he met with then-CEO Adam Albright.
“President Boakai left a very good impression on the MCC team,” Ngafuan said. “He wasn’t just speaking good English in Washington. He was making smart, strategic moves for Liberia.”
This visit helped reenergize MCC’s confidence in Liberia and laid the groundwork for the formal reinstatement process. Liberia was declared eligible for a second compact in December 2024, having passed the MCC’s scorecard, which assesses countries on indicators like control of corruption, government effectiveness, rule of law, and investment in people.
Minister Ngafuan, who took over the fiscal portfolio in September 2024, continued this momentum by engaging with MCC and other U.S. government entities, including the State Department and the Treasury. He detailed his meetings with the new MCC leadership, including Mr. Suhan Dasgupta, as well as his attendance at the World Bank/IMF annual meetings.
“They asked us hard questions. We gave them strong answers,” he noted. “They promised to escalate their impressions to Secretary Rubio, and the feedback has been very encouraging.”
According to Ngafuan, the MCC’s engagement with Liberia experienced a temporary pause earlier this year due to administrative transitions within the U.S. government. He clarified that the pause was misinterpreted by some Liberians as a cancellation.
“Some interpreted the pause as stop,” Ngafuan said humorously. “But in our old school days, we knew the difference between pause, play, and stop. This was just a pause.”
He confirmed that Liberia received a formal letter from MCC Deputy Vice President for Compact Operations, Alicia Robinson Morgan, indicating that the MCC has proposed Liberia for reaffirmation. The MCC Board is expected to meet early next week to finalize the decision.
Ngafuan acknowledged the strong domestic efforts that have sustained Liberia’s MCC engagement. He praised the technical team within the Ministry, led by Deputy Minister Dehpu Y. Zuo, for their ongoing work. He also highlighted the recent recruitment effort to fill critical positions for Liberia’s MCC office, including National Coordinator and Senior Economist.
“We put out the application for just two positions and received over 170 applications from Liberians across the country,” Ngafuan disclosed. “And I saw some of the CVs. Very impressive. This shows Liberia has talent.”
He emphasized that the recruitment process included participation from other ministries and independent transparency institutions like the General Auditing Commission (GAC), to ensure it remained merit-based and transparent.
Minister Ngafuan clarified that Liberia is currently in the “compact development phase.” This involves conducting a Growth Constraints Analysis (GCA) to identify the key structural barriers hindering economic growth in Liberia.
“MCC funds are catalytic,” Ngafuan said. “They are not designed to fix everything, but to unlock potential in key areas. That’s why the Growth Constraints Analysis is so important.”
He noted that in the first compact, the primary constraints identified were lack of power, inadequate roads, and limited access to finance. As a result, the first MCC Compact focused heavily on rehabilitating the Mount Coffee Hydropower Plant, one of the casualties of Liberia’s civil war. That investment, worth $257 million, also supported water and sanitation projects in some areas.
“Yes, we still have issues with electricity, but we now have power in places where there was once only darkness. And that’s because of MCC support,” he stated.
As for the total value of the upcoming compact, Ngafuan cautioned against speculation.
“People are floating numbers out there. But at this point, there is no official amount. It could be below or above the figures you’re hearing,” he said. “The actual compact size will be determined once the GCA and project costing are complete.”
One of the most encouraging signals came in December 2024 when the MCC Board unanimously approved Liberia’s eligibility for compact development.
“Not one board member raised an issue,” Ngafuan emphasized. “That shows Liberia has friends across the entire U.S. political spectrum.”
He also noted the positive engagement with outgoing U.S. Ambassador Michael McCarthy and Ambassador Mark Toner, who remained optimistic about Liberia’s progress.
“Ambassador Toner sent me an email just this week,” Ngafuan shared. “He’s upbeat and pleased that as he transitions, the MCC process remains alive and well.”
Minister Ngafuan also spoke about the Liberian government’s coordinated engagement strategy during President Boakai’s U.S. visit, describing it as a “whole-of-government” approach.
“While President Boakai was at the White House, security personnel were engaging on security matters, the Foreign Minister was handling diplomacy, and I was deployed on the economic front,” he said. “It was an action-packed engagement across multiple levels.”
In addition to MCC-related efforts, Ngafuan disclosed that he was also involved in discussions at the White House Faith Office, seeking aid for Liberia’s education and health sectors. The Ministry of Education and the Ministry of Health have since been put in direct contact with faith-based partners in the U.S.
Minister Ngafuan concluded the press briefing by managing public expectations and reaffirming the government’s commitment to transparency and national development.
“This engagement with the MCC is for Liberia,” he said. “We are not doing this for one person or one party. We are doing this for our people, our economy, and our future.”
He promised that once the MCC Board makes its formal decision next week, the government will immediately update the public on next steps.
“Let us look to next week to get the formal board approval. But all indicators are positive for your country,” he declared.
