Liberia has officially qualified for its second Millennium Challenge Compact, President Joseph Boakai announced on Wednesday night, December 18, 2024, during the annual Christmas tree lighting ceremony at the Executive Mansion in Monrovia.
The achievement reflects progress in governance and offers a unique opportunity for the country to address critical development challenges.
Reflecting on the significance of the compact, President Boakai highlighted the scale of the achievement and its potential to unlock resources for Liberia’s development.
“While I was Vice President to the country, we went to the United States to sign for $267 million plus, and at some point, $250 million. This one is much larger than that,” President Boakai said. He described the initiative as a “giant achievement” that will release significant resources for national development.
The president added that the details of the compact, including the total funding amount and focus areas, would be disclosed by the government in due course.
What is a Millennium Challenge Compact?
The Millennium Challenge Compact is a grant provided by the U.S. government’s Millennium Challenge Corporation (MCC) to support economic growth and reduce poverty in eligible countries. Nations qualify based on strong performance in governance, economic freedom, and investments in human capital.
Liberia’s qualification for a second compact reflects its progress in meeting these criteria and offers a platform to strengthen governance and development.
Liberia’s First Compact: Successes and Lessons
Liberia’s first compact, signed in 2015, provided more than $250 million to address challenges in the electricity and road sectors. The key achievements included:
Rehabilitation of Mt. Coffee Hydropower Plant: Restoring the plant boosted electricity generation and improved access power in post war Liberia.
Road Maintenance Fund: Strengthening road infrastructure through better maintenance systems enhanced connectivity and reduced transportation costs.
While the first compact delivered important progress, challenges in implementation and ensuring sustainability were also noted.
Implications for the Second Compact
This second compact arrives during President Boakai’s first year in office, presenting an opportunity for his administration to deliver on its development goals. With the president suggesting that the funding could exceed the over $250 million of the first compact, the potential exists for transformative investments in infrastructure, energy, and other critical areas.
As the government prepares to unveil its plans, the focus will be on ensuring that this opportunity delivers meaningful change for the nation.
Joseph Daniels reports for OK FM Liberia as Executive Mansion Correspondent. With a vested interest in making the voices of people from different walks of life heard, he has covered investigative stories relating to education, health, the environment, corruption, and violence against women and girls, among others. He graduated from the United Methodist University with a Bachelor of Art Degree in Mass Communications in 2020. Joseph is also a fellow at New Narratives, a non-profit organization helping media deliver independent, truthful information to its people so they can make informed decisions.
