Africa-Press – Liberia. The Minister of Finance and Development Planning, Augustine Kpehe Ngafuan, on Friday presented an overview of the country’s fiscal challenges while emphasizing Liberia’s improved performance on the 2025 Millennium Challenge Corporation (MCC) Scorecard. His remarks come as the nation awaits a crucial decision on its eligibility for a second MCC compact.
During an appearance on Class Reloaded, Minister Ngafuan disclosed that Liberia passed 12 of the MCC’s 22 indicators this year, including the two essential “hard hurdles”—Control of Corruption and Freedom of Information/Political Rights. These categories determine whether a nation qualifies for compact consideration.
“These benchmarks are mandatory,” he noted. “Liberia met both requirements, which reflects meaningful progress in governance and accountability.” He added that Liberia is one of only two Mano River Union countries to secure a passing score in 2025.
Minister Ngafuan also stated that Liberia’s bid for a second compact is back on track after delays linked to U.S. political transitions in 2024. He confirmed that an MCC mission visited Liberia in September and that the government has since engaged in additional technical and diplomatic discussions in Washington ahead of the MCC Board’s December meeting.
“We are still very much in contention and moving forward,” he said, sharing cautious optimism ahead of the final decision.
According to the minister, a potential second compact would likely focus on Liberia’s major growth constraints—particularly energy, road and transport networks, and agriculture. He further underscored the impact of the first MCC compact, which provided USD 257 million in funding and enabled the rehabilitation of the Mount Coffee Hydropower Plant.
Reaffirming the administration’s commitment to transparency and cross-agency coordination, he remarked, “We hope for the best, but we are also working for the best.”
Turning to the Draft FY 2026 National Budget, Minister Ngafuan revealed that the government used USD 16 million from the 2025 budget to settle overdue civil servant salaries from November and December 2023. He acknowledged that while settling these arrears was necessary, it placed significant strain on the country’s already limited fiscal resources.
“Sixteen million dollars from this year’s budget went to clearing 2023 salary arrears,” he said, stressing that meeting payroll obligations remains a top priority despite other demanding budget needs. He also noted that discussions on civil service pay harmonization are continuing as the government seeks a fairer and more sustainable wage system.
Minister Ngafuan concluded by noting that the Boakai–Koung Administration expects to channel major investments into the energy and road sectors—areas he described as essential drivers of national development and long-term economic growth.
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