Monrovia, Liberia – The next phase of negotiations toward a second Millennium Challenge Corporation (MCC) compact officially began on Thursday, January 15, 2026, as senior U.S. government and MCC officials arrived in Monrovia for high-level consultations. This came after the country was reaffirmed by the MCC Board in December, a decision that government officials hailed as a major economic lifeline and a vote of confidence in Liberia’s reform agenda.
The visiting delegation, which included U.S. officials, met with leaders from the Ministry of Finance and Development Planning. In order to remove major barriers to economic growth, enhance infrastructure, and increase private-sector investment, the Embassy and MCC announced the beginning of an intense compact development process that could unleash hundreds of millions of dollars in grant funds.
Liberia’s reaffirmation was “a good Christmas for citizens,” according to Finance Minister Augustine Kpehe Ngafuan, who noted that the path to approval was challenging and characterized by strict reforms, open communication, and persistent engagement with U.S. allies. “This path was not straight. There were some hiccups along the way.” However, he noted, Liberia proved that it is worthy of a second compact by solid cooperation and open communication.
He stated that the reaffirmation places Liberia in a narrow category of nations qualified for MCC’s extremely competitive development awards, which are given exclusively to those that satisfy stringent requirements on investment in people, economic freedom, and governance. “The process ahead, however, is expected to be rigorous, data-driven, and nationwide in scope,” Ngafuan narrated.
As for the compact development phase, which is anticipated to last up to two years, Madam Carrie Monahan, Managing Director for Africa at the Millennium Challenge Corporation, confirmed that it will include extensive economic analysis, stakeholder consultations from the public, private, and civil society sectors, and a significant “root cause analysis” workshop that is set for February 2026.
According to her, senior leadership is anticipated to be in place by February, and Liberia has already started hiring personnel for a new MCC coordinating office. “This is a country-led process. Our role is to support, but the vision, priorities, and ownership must come from Liberia. The goal is a compact that delivers real, lasting economic transformation,” the MCC official stated.
Speaking as well, U.S. Charge d’Affaires Joseph Zadrozny reiterated Washington’s dedication to the collaboration, characterizing the second compact as a new chance to strengthen ties between the United States and Liberia and expedite development results. The second MCC agreement now serves as more than just foreign aid for Liberia, a nation still struggling with infrastructural deficiencies, unemployment, and sluggish growth. It is a crucial test of Liberia’s ability to turn reform pledges into quantifiable advancements.
