By: Julius Konton
Liberia has entered the Compact Development Phase of its second Millennium Challenge Corporation (MCC) Compact after the U.S. government reaffirmed the country’s eligibility, a milestone widely viewed as a strong vote of confidence in Liberia’s governance reforms, anti-corruption efforts, and democratic credentials.
Finance and Development Planning Minister Augustine Kpehe Ngafuan said the new phase typically lasting 12 to 24 months marks the most critical stage of the MCC process, during which priority sectors are finalized, projects are fully designed, and funding ceilings are determined based on U.S. Congressional appropriations.
“We are not going to snail-pace this process,” Ngafuan told reporters at a news conference. “We are sprinting”, he re-emphasized.
From Eligibility to Investment: What the Compact Development Phase Means
During the Compact Development Phase, Liberia and the MCC will jointly undertake:
Final selection of priority sectors
Detailed project design and costing
Economic rate-of-return and cost-benefit analyses
Determination of the overall compact size, based on MCC funding availability
Historically, MCC compacts globally range between US$300 million and US$500 million, depending on country size, reform performance, and project ambition.
Liberia’s first compact, signed in 2015, was valued at US$257 million and focused largely on energy sector reform.
Minister Ngafuan said the government intends to complete the current phase faster than the global average by ensuring early institutional readiness and political coordination.
Immediate Steps: Staffing and Institutional Readiness
Following official notification of Liberia’s reaffirmation on Thursday, December 11, 2025, Finance and Development Planning Minister Augustine Kpehe Ngafuan held a nearly one-hour virtual meeting with senior MCC leadership to map out next steps.
As part of a rapid mobilization strategy, the Ministry of Finance and Development Planning is expected to publish vacancy announcements for two critical leadership positions:
MCC National Coordinator and
Chief Economist
“These positions existed previously but must be reconstituted following changes in the U.S. administration and restructuring at MCC,” Ngafuan explained.
Additional technical roles to be recruited include:
Gender and Social Inclusion Specialists
Private Sector Development Experts
Monitoring and Evaluation Officers
Environmental and Safeguards Specialists, among others.
The government, with legislative backing, has already secured initial budgetary allocations to finance the setup phase until MCC funding formally takes over usually within 12 months, he said.
High-Level MCC Missions Expected in Early 2026
Liberia is expected to receive its first high-level MCC mission early next year.
According to the Finance Minister:
The MCC Africa Regional Director is scheduled to visit around January 19, 2026
While A full Compact Development Team is expected in mid-February 2026
The government aims to have all core personnel in place by February 1, 2026, ensuring that technical teams can begin work immediately upon arrival, Minister Ngafuan added.
Focus Areas: Energy, Roads, and Binding Growth Constraints
Preliminary findings from an MCC scoping mission conducted in September 2025 identified energy access and road infrastructure as Liberia’s most binding constraints to economic growth.
Liberia currently has an electricity access rate of less than 30 percent nationwide, with rural access below 10 percent, while poor road connectivity continues to raise transportation costs and limit market access for farmers and businesses.
As part of the compact development process, Liberia and MCC will now undertake:
A Root Cause Analysis of growth constraints
Sector prioritization (one, two, or multiple sectors)
Technical feasibility, environmental, and social impact studies rather than dispersing resources thinly
The government, he stated plans to pursue targeted, high-impact investments capable of unlocking private-sector growth, boosting productivity, and creating jobs.
Funding Outlook and Political Urgency
Minister
Ngafuan emphasized that the final size of Liberia’s second MCC Compact will depend on:
Project scope and technical design
Performance benchmarks and reform sustainability
U.S. Congressional appropriations to MCC’s global portfolio
At the same time, he stressed urgency at the highest level of government.
“The President is impatient with delays. The Liberian people are impatient,” Ngafuan said. “That is why we are moving fast”, he re-emphasized.
Stricter MCC Standards, Higher Hurdles
Liberia’s reaffirmation follows a rigorous reassessment under a newly revised MCC evaluation framework introduced during the U.S. political transition and subsequent restructuring of the agency.
Under the new rules:
Governance indicators increased from 20 to 22
Countries must now pass at least 11 indicators, up from 10
Two indicators were elevated to mandatory “hard hurdles”:
Control of Corruption and
Protection of Civil Liberties and Personal Freedoms
Failure to pass either hard hurdle results in automatic disqualification.
Liberia passed 12 of the 22 indicators, including both hard hurdles.
“You can pass every other indicator, but if you fail the two hard hurdles, you are not eligible,” Ngafuan explained. “Liberia passed them.”
Liberia Stands Out in a Challenging Region
While the MCC does not publicly disclose the names of countries that fail to qualify, Minister Ngafuan acknowledged that several West African countries did not meet the new thresholds.
“If you know what happened across the region, you will appreciate what Liberia has achieved,” Ngafuan said.
The reaffirmation places Liberia among a select group of low- and middle-income countries globally eligible for large-scale, grant-based development financing tied strictly to governance performance, transparency, and policy discipline.
A Vote of Confidence with Long-Term Impact
Government officials and development analysts alike describe the MCC reaffirmation as a powerful signal to international partners, investors, and financial institutions that Liberia’s reform trajectory is gaining credibility.
As the country accelerates into the Compact Development Phase, expectations are mounting that a second MCC Compact could deliver transformational investments capable of reshaping Liberia’s economic landscape over the next decade particularly in energy access, infrastructure connectivity, and private-sector-led growth.
Editor’s Note:
This article captures a pivotal moment in Liberia’s development journey, highlighting not just a procedural advance in the Millennium Challenge Corporation (MCC) process, but a broader affirmation of the country’s governance reforms and democratic resilience.
By situating Liberia’s entry into the Compact Development Phase within the context of tougher MCC standards, heightened regional competition, and shifting U.S. policy dynamics, the report underscores the significance of passing newly established “hard hurdle” indicators on corruption control and civil liberties.
The detailed timelines, institutional steps, and sectoral priorities outlined here reflect a deliberate sense of urgency at the highest levels of government, while also providing readers with a clear understanding of what lies ahead in the 12–24 month development phase.
Importantly, the article balances optimism with realism, noting that the ultimate size and impact of the second MCC Compact will depend on sustained reform performance, technical readiness, and U.S. Congressional appropriations.
As Liberia moves swiftly from eligibility to investment design, this piece offers essential insight into how governance credibility can translate into large-scale, grant-based development financing and why the stakes are high not only for policymakers, but for ordinary Liberians seeking improved energy access, better roads, and expanded economic opportunity.
