By: Julius Konton
A senior delegation from the Millennium Challenge Corporation (MCC) concluded a high-profile visit to Liberia this week with strategic meetings and consultations that mark the official start of the development process for Liberia’s second MCC Compact.
The delegation led by Carrie Monahan, MCC’s Managing Director for Africa held a detailed debriefing with Liberia’s Acting Minister of Finance and Development Planning, Anthony G. Myers, and senior officials from the ministry.
In addition, MCC representatives participated in a roundtable discussion with leading civil society organizations, underscoring inclusive engagement as Liberia embarks on a new phase of bilateral development cooperation.
A Two-Decade Partnership
The Millennium Challenge Corporation, an independent U.S. government agency created by Congress in 2004, is tasked with reducing global poverty through economic growth.
MCC partners with countries that meet rigorous performance standards in governance, economic policy, and anti-corruption measures, and then works with their governments to design and implement time-limited investment programs known as “compacts.”
Liberia’s engagement with MCC dates back to the early 2010s, when the nation first passed the MCC scorecard and became eligible for compact assistance.
Its first compact, signed in 2015 and valued at approximately USD 257 million, focused on critical infrastructure mainly expanding access to reliable electricity and improving road maintenance systems.
Millennium Challenge Corporation
Legacy of the First MCC Compact
Liberia’s initial MCC Compact yielded measurable gains:
Prior to MCC investment, less than 4 % of Liberians were connected to the national electricity grid.
By the compact’s closeout in 2021, that figure had climbed to about 12 %, significantly expanding on-grid access.
The rehabilitation of Liberia’s largest power source, the Mount Coffee Hydropower Plant, helped reduce energy costs and supported broader economic activity.
The compact also supported the creation of an independent energy regulator, technician training programs, and improved systems for road maintenance planning and execution.
Across MCC’s global portfolio, the agency has approved 45 compacts in more than 30 countries worth over USD 17 billion, underscoring the scale and global reach of its development model.
The New Compact Development Phase
Liberia’s eligibility to pursue a second MCC Compact was reaffirmed by the MCC Board of Directors in December 2024, following improvements in governance and performance on MCC’s scorecard.
This year’s high-level visit in January 2026 concluding with the debriefing and civil society engagement marks the formal start of negotiations and analytical work to identify priority sectors for potential investment in the next compact.
The compact development process typically involves detailed analyses to pinpoint the “binding constraints” to economic growth in Liberia and design targeted projects to address them.
During their stay, MCC officials and Liberian counterparts also deliberated on stakeholder priorities, governance reforms, and social inclusion, ensuring that civil society perspectives contribute to shaping the next compact’s objectives.
A Conditional Path to Approval
While Liberia’s eligibility is an important milestone, a compact is not yet guaranteed.
The final compact program including sector focus, investment size, and specific interventions will depend on joint analytical work between MCC and the Liberian government, availability of MCC funds, and final approval by the MCC’s Board of Directors.
Officials from both sides have expressed optimism that this next phase of collaboration will build on past achievements and support the nation’s ongoing development goals.
