MONROVIA, Liberia — Finance and Development Planning Minister Augustine Kpehe Ngafuan says Liberia is “on track and confident” as the country awaits the Millennium Challenge Corporation’s (MCC) forthcoming decision on whether Liberia will retain eligibility for a second compact—one of the most competitive and transformative U.S. development programs.
Speaking during a press engagement on Tuesday, December 9, in Monrovia, Ngafuan revealed that the U.S. Government’s internal review is nearing conclusion and the MCC Board is expected to meet on Wednesday, December 10. He emphasized that Liberia has met its obligations, strengthened governance indicators, and demonstrated credible progress in reforms demanded under the MCC scorecard.
“We are hopeful. Liberia has done its part, and we are waiting for the MCC to release its decision. Our confidence is grounded in the work we have done, not in wishful thinking,” he said.
A Year of High-Level Engagement and Intense Diplomatic Work
Ngafuan described the last year as one of the most active periods of U.S.–Liberia engagement in recent history. He outlined a series of meetings held in Washington, Monrovia, and New York—many involving President Joseph Nyuma Boakai—and detailed how Liberia weathered the U.S. administration’s sweeping review of MCC programs.
“Many countries were dropped. Liberia is still in the game. That alone speaks volumes,” Ngafuan said.
Liberia passed 12 of the 22 MCC indicators, including the two mandatory “high hurdles”: Control of Corruption and Political Rights—key benchmarks that determine continued eligibility.
Energy and Roads Remain Compact Priorities
If reaffirmed, Liberia’s second compact is expected to focus on energy access, grid strengthening, and critical road infrastructure—the areas identified as the country’s two greatest constraints to economic growth.
“Energy is our biggest challenge. Roads are next. They are catalysts—unlocking agriculture, jobs, trade, health, and education. That’s why these sectors anchor our compact request,” he noted.
The updated Energy Compact seeks to expand electricity access from 33% to 75% in five years, reduce tariffs, and modernize Liberia’s grid transmission capacity.
Major Road Corridors Reactivated After Funding Secured
Ngafuan also confirmed major progress on the long-delayed Gbarnga–Salayea–Konia–Voinjama–Mendikorma Highway, following the government’s success in clearing inherited arrears and renegotiating financing with Arab partners.
New and renewed commitments include:
- US$12.8 million — Kuwait Fund
- US$30 million — OPEC/OFID
- US$30 million — BADEA
- US$10 million — Saudi Fund
“Work has restarted. The road is moving, and communities are already celebrating. We intend to push it all the way to Konia and Voinjama—with no pause,” he said.
A delegation from ECOWAS Bank for Investment and Development (EBID) is also in Monrovia for discussions on additional financing for infrastructure, including critical upgrades for JFK Medical Center.
Inflation Falls Below 5%: “A Silent Victory for Liberians”
Ngafuan highlighted a major macroeconomic turnaround, announcing that inflation has dropped below 5 percent, down from nearly 13 percent earlier this year.
“Stable inflation protects income and shields households from silent suffering. We have reversed a dangerous trend, and Liberians are already feeling the difference,” he stated.
He credited improved road access for helping reduce domestic food inflation and stabilizing market prices.
National Budget “Realistic and Responsible”
Addressing concerns regarding the US$1.2 billion draft national budget, Ngafuan defended its projections as technical, evidence-based, and rooted in realistic revenue trends.
“We do not project loosely. Even after USAID cut $300 million, we held the system steady. Our economic management is grounded in discipline and data,” he asserted.
He urged the Legislature to pass the budget in time to avoid entering a one-twelfth spending regime, which delays development projects.
Labor Data Reform Underway
Ngafuan confirmed that the government is working with LISGIS and the Ministry of Labor to improve labor market statistics—important for the new National Employment Acceleration Strategy.
“We’ve Lifted Liberia 15 Feet Out of a 20-Foot Hole”
In one of his strongest metaphors of the day, Ngafuan described Liberia’s ongoing recovery:
“We met the country in a 20-foot hole. Today, we’ve pulled it up 15 feet. Some may say we’ve done nothing because we are not yet on level ground—but context matters. Progress matters. And Liberia is climbing out of that hole.”
Awaiting the MCC Decision
While the government awaits the MCC’s final announcement, Ngafuan insists Liberia has demonstrated commitment, reforms, and measurable progress.
“Your country has done its part. Now we wait for the MCC to do theirs,” he said, closing the press briefing.
