Monrovia, Liberia – Augustine Kpehe Ngafuan, Minister of Finance and Development Planning, has spoken out against the United States Millennium Challenge Corporation’s (MCC) immediate stop due to Liberia’s eligibility, saying that the nation may no longer hope and rely on the MCC as a priority.
Speaking Friday, May 9, 2025, on a local radio station, Minister Ngafuan said that the announcement of Liberia’s qualifying for the MCC Corporation was warmly received by most people since it signifies speedier growth, particularly in the areas of electricity and infrastructure.
According to the Minister, the MCC team visited Liberia in January 2024 and granted the Ministry of Finance permission to hire five people for the program: a coordinator, a senior economist, a private sector specialist, and a gender specialist. The hundreds of Liberians who applied for the positions were posted on websites and in newspapers, which he said gave the process hope and confidence.
“As for what transpired there, we have no authority over the American government or its democracy. America has a new government. At this point, the MCC might not be a top priority. We cannot keep holding out hope for the MCC. So, regrettably, everything is where we are right now, he noted.”
On December 19, 2024, the Board of Directors of the Millennium Challenge Corporation (MCC) decided that Liberia was now qualified to create a compact during its quarterly meeting on December 18.
Liberia was chosen because of the nation’s efforts to improve its performance on the MCC scorecard and its dedication to implementing important changes in democratic government and the economy. The Board also talked about the increased potential that MCC has due to the Millennium Challenge Corporation Candidate Country Reform Act.
“The MCC is proud of our longstanding history with Liberia and is excited to embark on a new partnership that will promote opportunities for the people of Liberia,” MCC Chief Executive Officer Alice Albert said during the Board meeting.
The Minister stated that, drawing resources from external partners and increasing domestic resource mobilization as they outline domestic fiscal management and resources policy mobilization initiatives taken to fill the gape.
According to him, Liberia is also working to execute the Liberia First Policy, which is why they are now concentrating on important topics that will preserve the country’s sovereignty and generate domestic income to reduce the gap and financial ties, even though the MCC Compass has stalled.
Currently, the nation’s budget was $738 million last year. “We had a domestic resources commitment of about US$690 million. US$698 million was raised by the Liberia Revenue Authority and other revenue-generating organizations, which is a hundred dollars over the goal. Additionally, the Minister revealed that last year’s domestic revenue was the biggest in the nation’s history.”
He said that they are currently concentrating their efforts on increasing domestic resources and national income, which would be completely realized with the next technological advancements brought about by the LRA.
“A technological initiative called the payment switch, which will be installed at companies to create receipts, is set to be introduced by the LRA. Additionally, we are considering modifying the case and removing connections. There will be more audits. With the aid of technology, we will be able to raise more money for ourselves, which will be beneficial. To get the greatest deal for Liberia, we are also negotiating concessions,” he said.
While giving an update on the Liberian economy and the United States Government’s decision to cease help from the United States Agency for International Development, the Minister acknowledged that although there are still difficulties in the economy, it is steadily improving.
Providing update on the USAID aid halt, the Minister pointed out that the USAID has halted twenty-seven of its twenty-eight project, which is closed to US$360 million in commitment.
According to him, this cancellation has mainly affect agriculture, health and infrastructure therefore, government is intervening in those sectors and several others because they can’t allow hospitals go without drugs because partners pullout.
“We have the abrupt cut of USAID aid to Education, health and agriculture due to the cancellation of the USAID project. At first, it started with all the projects suspended for 90 days. Than after a while, some of the projects starting getting canceled. The American Ambassador and the USAID Director and team have been briefing me. Now,of the twenty-nine projects that USAID was implementing in Liberia, twenty-seven have been canceled. Now, in dollars and cent we are talking about some upward of US$360 million in project commitment “ he noted.
Commenting on the economy, he said that despite the challenges, they are making progress, while naming the lack of energy, u development of human capital and infrastructure deficit as banding constrain to growth, especially bad road conditions.
He maintained that the government’s policy initiatives are helping to significantly open up the economy by providing a more reliable supply of power to businesses nationwide, which will create jobs.
Although they are working to make sure Liberians have the skills needed for employment, the finance minister highlighted the fact that LISGIS and other pertinent institutions would not be able to give the essential data about job creation.
“The economy is experiencing modest growth over the last year. From where I sit and see, the Liberia’s economy growth outlook looks good, although there have been some challenges. We are adjusting. We have a growth of about 5.3%. the last year’s growth was about 4.8%, which was mainly driven by action in agriculture, Fisheries and mining and forstery. Now, inflection is still in manageable limit. In January inflection left a single digit level to 12%, now back in single digit. Also, Liberia is one of few countries that have inflection in controllable limit. Over all, the aggregates are good. On the macroeconomics level, the Liberian economy is facing challenges. Despite some vulnerability, we are making progress,” he noted.
