By Socrates Smythe Saywon
MONROVIA – Liberia’s path to securing a second Millennium Challenge Corporation (MCC) Compact now hinges on an upcoming decision by the MCC Board of Directors, following a period of cautious optimism fueled by high-level diplomatic efforts.
In December 2024, Liberia achieved eligibility for a new MCC Compact after passing at least 10 of the 20 indicators on the MCC Scorecard, including key measures on the rule of law, trade policy, and fiscal management. President Joseph Boakai announced the milestone on December 18 at the Executive Mansion, describing it as a “significant step forward for our nation.”
“The MCC has recognized Liberia’s efforts in governance and reform,” Boakai said. “This Compact will empower us to tackle critical challenges to economic growth.”
The Compact, which could bring as much as US$500 million in grant funding, is intended to address infrastructure, economic development, and institutional capacity. However, the program’s implementation faced an unexpected pause due to foreign aid policy reviews by the new U.S. administration under President Donald Trump. The delay raised concerns that the Compact might face the same fate as other U.S. aid programs such as USAID, which experienced significant funding cuts.
Amid the uncertainty, Liberia’s Minister of Finance and Development Planning, Augustine Ngafuan, has confirmed that the MCC Board is scheduled to meet early next week to decide whether to reaffirm Liberia’s eligibility and move forward with the Compact process.
Ngafuan, speaking to reporters in Monrovia on Monday, July 28, 2025, disclosed that he received official communication from Alicia Robinson-Morgan, Deputy Vice President for Compact Operations at the MCC, confirming the upcoming board meeting. “We are hopeful and optimistic,” he said. “The love that individual board members of the MCC have for Liberia gives us confidence that this reaffirmation will be successful.”
The Finance Minister credited the progress to President Boakai’s recent diplomatic outreach during his visit to the United States, noting that the President’s meetings with key U.S. officials helped strengthen Liberia’s case.
However, Ngafuan cautioned the public against premature celebration, stating that no specific funding figure has been finalized. “The MCC has not announced any definitive amount,” he emphasized. “Those figures being circulated are speculative.”
His comments directly challenge local media reports that Liberia is already set to receive US$500 million under the new Compact. While that figure remains a goal, Ngafuan reiterated that it is yet to be confirmed by the MCC.
Liberia previously benefitted from a US$257 million Compact in 2015, which focused on energy access and road infrastructure. The second Compact, if approved, would build on those gains while targeting broader sectors critical to economic transformation.
As the MCC Board prepares to meet, attention in Monrovia is shifting toward the outcome and the implications for Liberia’s development trajectory. Government officials, civil society, and international partners alike are closely watching the process, which could unlock a major infusion of capital into the nation’s struggling economy.
For now, Liberia waits, cautiously optimistic that the board’s decision will open the door to renewed U.S. investment and support.
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