Africa-Press – Sierra-Leone. Sierra Leone stands to be significantly impacted by potential drastic cuts or a complete shutdown of the Millennium Challenge Corporation (MCC), a United States development agency.
Recent reports indicate that the MCC may be the next target of the Trump administration’s efforts to streamline government efficiency.
An internal email sent to MCC staff on Tuesday revealed that the Department of Government Efficiency (DOGE), led by Elon Musk, is expected to implement a “significant reduction” in the number of MCC’s programs and its staff.
This development has cast serious doubt on the future of the agency, with some sources suggesting it could be effectively closed down.
The MCC has been a crucial partner for Sierra Leone’s development efforts. In September 2024, the Government of Sierra Leone and the MCC signed a $480 million Energy Compact. This substantial investment aims to transform Sierra Leone’s energy sector by expanding and strengthening the national transmission network, increasing electricity access in major towns, and improving the sector’s financial stability through governance reforms and institutional strengthening.
This landmark agreement built upon the successes of a previous $44.4 million MCC Threshold Program, which concluded in 2021 and supported improvements in Sierra Leone’s water and electricity services. The Energy Compact was anticipated to benefit over 4 million Sierra Leoneans and foster economic growth by providing more affordable and reliable electricity for households, businesses, and social institutions. The Government of Sierra Leone committed to contributing $14.2 million towards the compact.
The approval of this compact by the US Congress followed Sierra Leone’s reselection for compact development in December 2023. This reselection was contingent upon addressing concerns related to the country’s 2023 general elections. While progress was acknowledged, US Senators had emphasized the need for continued efforts to strengthen democratic and electoral structures, including the release of the Electoral Review Committee report.
The potential termination of the MCC would have profound implications for Sierra Leone’s energy sector development plans. The signed Energy Compact, which includes key projects focused on distribution and access, power sector reform, and transmission infrastructure, was designed to address a critical constraint to the nation’s economic growth – the insufficient availability of reliable and affordable electricity.
According to the internal MCC email, existing programs in some countries, including Ivory Coast, Mongolia, Senegal, and Nepal, may be given a brief period for wind-down. However, the email also indicated that MCC contracts could begin to be terminated imminently, and partner countries with active compacts have already received stop-work notices.
The potential shuttering of the MCC raises serious concerns about the future of the $480 million Energy Compact for Sierra Leone and the broader development partnership between the two nations.
Yusuf Keketoma Sandi, Press Secretary to Sierra Leone’s President Julius Maada Bio, commented on the situation, stating, “MCC was created by an Act of Congress – Millennium Challenge Act of 2003. It will be interesting to see how DOGE will take the repealing legislation to Congress.”
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