Monrovia, Liberia – Liberia obtained a second agreement from the Millennium Challenge Corporation (MCC), a U.S. government program that aims to combat poverty and promote economic progress, President Joseph Boakai revealed this on Wednesday night, marking a historic accomplishment for the nation.
President Boakai hailed the announcement as evidence of Liberia’s advancements in governance and reform in a live speech from the grounds of the Executive Mansion in Monrovia. “Liberia has qualified for a second compact according to the MCC because of our exceptional performance in governance and reform. This tremendous accomplishment will help address the binding constraints to growth in our nation and unlock resources for our development agenda.”
The president praised Liberians’ combined efforts and emphasized the accomplishment’s importance to the country. “This is a win for all Liberians, not just the government. It shows that the international community believes we can make progress through reform and unity. Let’s work together to celebrate our collective achievement.”
Liberians expressed anticipation that the agreement, together with significant foreign direct investments, would give public infrastructure and economic possibilities a much-needed boost. His comments caused huge jubilation throughout the nation.
His comments caused a great deal of joy throughout the nation, and Liberians expressed optimism that the compact and significant foreign direct investments would significantly improve economic prospects and public infrastructure.
One of the country’s most well-known private investors, ArcelorMittal Liberia, engaged in the festivities and congratulated President Boakai and Liberians. By emphasizing how its own investment strategy and MCC’s values of economic growth and good governance fit, the corporation reiterated its long-term commitment to Liberia.
“ArcelorMittal believes that economic growth is more effective at reducing poverty in well-governed countries,” said a company official.
As Liberia’s largest foreign investor, ArcelorMittal has committed over $2.5 billion to the country, making it the second-largest employer after the government. The company’s $1.7 billion Phase Two expansion project, which is currently underway, includes critical upgrades to Liberia’s infrastructure. These efforts encompass expanding the Buchanan-Yekepa railway, renovating the Buchanan Port, and constructing a state-of-the-art ore processing plant in Zolowee, Nimba County.
These investments have already generated jobs, supported community development, and bolstered Liberia’s broader economic growth. ArcelorMittal views the second MCC compact as a critical complement to its efforts, with the potential to in an important way enhance the country’s economic trajectory.
A top executive at ArcelorMittal Liberia who wished to remain anonymous remarked on the complementarity between the company’s investments and the compact. “The country is expected to generate substantial government revenue through taxes and royalties and create much-needed jobs for Liberians if ArcelorMittal expands next year and the MCC compact is combined with the growth of the mining sector,” the source stated.
Since its creation by Congress in 2004, the MCC has served as a vital component of American initiatives to support sustainable development in nations with robust democracies. The organization has so far spent $17 billion on infrastructure, energy, education, and agriculture projects worldwide.
In 2010, Liberia began working with the MCC after being awarded a threshold grant of $15 million to target trade reforms, girls’ education, and land access. This achievement opened the door for a $257 million compact in 2015 that enhanced transportation networks, restored the Mount Coffee Hydropower Plant, and modernized the electric industry.
Notwithstanding these developments, issues like electricity theft and unstable finances limited the first compact’s full impact. Its Economic Rate of Return (ERR) was 8.4%, which was less than MCC’s objective of 10%.
Liberia’s eligibility for a second compact is a result of advancements in the MCC scorecard, which assesses economic freedom, governance, health, education, and corruption prevention. These changes have been positioned by President Boakai’s government as the cornerstone of long-term economic growth.
Liberia is expected to expand economically at a time when the second MCC accord is being signed. In 2025, the World Bank and IMF predict that Liberia’s GDP would expand by 5.8% and 5.1%, respectively. This growth is anticipated to be mostly driven by the mining industry, highlighting its significance as the foundation of Liberia’s economy.
According to the ArcelorMittal official, “Liberia’s reliance on the mining sector underscores its pivotal role in fostering economic resilience and sustainable growth.” The minerals in the MCC compact, when combined with investments in mining infrastructure, have the potential to greatly boost export earnings and production capacity.
Addressing growth restrictions and creating a robust economic future will need cooperation from the government, foreign partners, and private companies like ArcelorMittal as Liberia progresses.
Additionally, President Boakai’s declaration has reignited optimism for even bigger accomplishments in the future while also highlighting the nation’s consistent growth.
