Liberia’s MCC bid still in limbo as U.S. Board backs Fiji, Tonga

Published: August 22, 2025

MONROVIA/WASHINGTON — Liberia’s hopes of securing a second Millennium Challenge Corporation (MCC) Compact remain clouded with uncertainty after the U.S. aid agency’s board this week confirmed new partnerships with Fiji and Tonga but made no mention of Monrovia.

The MCC Board of Directors, chaired by U.S. Deputy Secretary of State Christopher Landau, met on August 21 to select new country partners and review foreign aid priorities under the Trump administration’s “America First” agenda. In its statement, the board announced Fiji had been chosen for a full compact and Tonga for a threshold program, citing the two Pacific nations’ reform commitments and strategic importance.

But conspicuously absent from the release was any reference to Liberia, despite months of speculation in Monrovia that the country was on the verge of regaining eligibility for a second MCC compact.

Official Optimism, Lingering Doubts

Liberia’s Finance Minister Augustine K. Ngafuan had told reporters in late July that while prospects were strong, no final decision had been made. “Let me be clear: Liberia has not yet won the second MCC Compact,” Ngafuan said, cautioning against premature celebration.

Liberia, which successfully implemented its first $257 million compact funding the rehabilitation of the Mount Coffee Hydroelectric Plant and reforms in energy and road maintenance, has been lobbying for a second round. President Joseph Boakai personally raised the issue in Washington in late 2023, and Liberian officials have since engaged U.S. agencies to make the case for renewed support.

MCC Deputy Vice President Alicia Robinson-Morgan recently confirmed Liberia was under consideration for reaffirmation, pending a board vote. However, the August 21 meeting appeared to push that decision further down the road, leaving questions over when or whether Liberia’s eligibility will be formally renewed.

Regional Stakes and Policy Priorities

The Liberian government has already launched preparatory work, including a Growth Constraints Analysis to identify economic bottlenecks and plans to hire a national MCC office team. Officials argue the second compact is crucial to filling an $8.34 billion financing gap in the country’s development plan.

Yet no grant size has been confirmed, and the MCC has signaled that further announcements, including possible program terminations elsewhere, will come only after required consultations with the U.S. Congress.

Liberia’s file remains active but unresolved. “The indicators look good,” Minister Ngafuan insisted, pointing to Liberia’s performance on MCC scorecards measuring governance, economic freedom, and investment in citizens.