Millennium Challenge Corporation (MCC)  was established by U.S Congress in 2004.  With a unique model for country-led development and ownership, and a new $480 million compact with Sierra Leone to improve affordable energy access, we spoke with Neb Girma, Practice Lead and Senior Director at MCC, to discuss impact, news, and plans, in advance of the West Africa Energy Cooperation Summit (WA-ECS). 

This year, MCC celebrates its 20th anniversary – what are you most proud of and what makes MCC different to other international development agencies?

MCC has had an impressive history of transformative impact over two decades, providing sustainable energy solutions that drive economic growth and poverty reduction.

Over nearly two decades, MCC has invested nearly $17 billion in infrastructure and policy reforms in health, education, power, agriculture, and transport across 47 countries, with programs expected to benefit nearly 400 million people. MCC is one of the largest sources of flexible U.S. Government grant financing for long-term economic development, and this allows MCC to follow the analysis and listen to country partners in determining the problem and how to solve it.

The MCC model has been repeatedly recognized by the international community as a leading example of country ownership, focus on results, inclusive partnerships, transparency, and mutual accountability.

MCC's Benin Power Compact, for example, tripled the nation's grid capacity benefiting many businesses, schools, households and communities from more reliable and affordable access to power. The Benin Energy Compact is a good example on how MCC’s work empowers communities, expanded energy access and foster cleaner, more resilient energy systems that uplift the entire country.

MCC has a unique model of country-led development, rigorous data-driven analysis, and strong commitment to accountability and measurable results. MCC’s focus on country ownership ensures that investments are centered around shared responsibility, ensuring that the benefits are both lasting and scalable.

 

How does MCC help partner countries create a business-friendly environment to attract private investment?

MCC helps partner countries create a business-friendly environment to attract private investment by focusing on key reforms and investments that reduce barriers to economic growth and make markets more appealing to investors. Here are some core ways MCC achieves this:

I. Policy and institutional Reform (PIR): MCC works with partner countries to implement policy reforms that improve the regulatory environment, reduce bureaucratic red tape, and promote transparent legal framework. This includes in areas like regulatory reform, improved contract enforcement, and land tenure security.

II. Infrastructure Development: MCC invests in critical infrastructure, such as energy, transportation, and water systems that underpins economic growth and attract investment. Reliable infrastructure is essential for business to operate efficiently and for investors to see long-term value in a region.

III. Public-Private Partnerships (PPPs): MCC promotes and facilitates PPPs by helping countries design, negotiate, and implement agreements that engage private sector capital and expertise.

The approach mobilizes additional resources and ensures that infrastructure and service delivery meet private-sector standards of efficiency and sustainability.

IV. Capacity Building and Institutional Strengthening: MCC builds local capacity by training public sector technical/management teams to strengthen sector institutions, making it easier for countries to attract and manage investments effectively. Stronger institutions also inspire investor confidence, as they indicate a stable, capable environment for conducting business.

V. Data-Driven Investment Planning: MCC uses rigorous economic analysis and impact evaluations to select projects that align with the partner country’s growth priorities. By identifying the most impactful investments, MCC creates a clear business case for private investment in areas with strong growth potential.

Through these strategies, MCC supports partner countries in creating a stable, transparent, and predictable environment that draws private sector interest, leading to sustained economic growth and poverty reduction.

 

MCC recently approved a regional compact for Côte d’Ivoire (CDI) – could you tell us about this? Is this the first of its kind from MCC?

Yes, the MCC’s Board recently approved a Regional Energy Compact for Cote d’Ivoire. The Regional Compact aims to enhance cross-border electricity trade between Cote d’Ivoire and other West African Power Pool (WAPP) member market participants and strengthen infrastructure within the region, promoting both economic growth and energy security.

The Compact is indeed groundbreaking and the first Regional Energy Compact of its kind from MCC.

This initiative highlights the importance of regional integration in the Energy sector. By supporting Cote d’Ivoire, WAPP and ECOWAS Regional Electricity Regulatory Authority (ERERA), through this Compact, MCC will provide the technical and market tools required to perform in the day-ahead electricity trade coupled with regulatory alignment to increase the volume of cross-border transactions in the region.

The Compact will help Cote d’Ivoire and neighboring countries to benefit from shared resources, increase grid stability, and attract private sector investment in the Regional Electricity Market. The approach supports a more interconnected and resilient energy future for West Africa.

 

You have also signed a very significant compact with Sierra Leone – how did this come about and what is the timeframe usually involved?

The Compact with Sierra Leone represents an important partnership developed through MCC’s careful selection and engagement process, which is designed to maximize impact on poverty reduction and economic growth. This process typically begins with a rigorous country selection process based on indicators of good governance, economic freedom, and investment in citizens, which is evaluated annually by MCC.

The Sierra Leone Compact is the result of a collaborative process of identifying binding constraints to economic growth and designing programs to target those constraints. With Sierra Leone’s government and stakeholders, MCC identified Energy access and reliability as key challenges to the country’s economic development. This partnership was built on a shared vision to improve Energy infrastructure, increase access to electricity, and create a more sustainable energy sector.

The Sierra Leone Compact will follow a similar process and timeline. MCC programs typically take two to three years to develop and prepare and follow a strict five-year implementation period. Through robust planning and partnership alignment, MCC can ensure impactful outcomes that will benefit the country’s Energy sector and broader economy.

 

Can we expect to see news of any other compacts in West Africa soon?

Typically each December, MCC’s Board selects countries as eligible for MCC assistance. MCC remains focused on the region, especially in sectors such as Energy and Infrastructure, which are crucial for regional growth and economic integration.

The MCC Board uses a four-step process, including identifying candidate countries and establishing the criteria and methodology used to select countries. The selected countries, if they agree to participate, then develop a program proposal with MCC. Following, MCC works alongside the country to develop a program that aims to reduce poverty and spur economic growth.

 

What are you most excited about and what would you like to see come out of conversations at West Africa Energy Cooperation Summit (WA-ECS)?

At the upcoming WA-ECS in Togo, there is a lot to be excited about, especially given MCC’s focus on Energy Access, Cross-Border trade, and sustainable development in the region. Here are some key hopes and expectations for the conversations there:

i. Strengthening Regional Energy Markets: I’m excited about discussions on advancing regional electricity markets and interconnected grids. These conversations could help remove existing barriers to cross-border energy trade, aligning policies and regulations that make electricity flows smoother and more reliable across West Africa.

ii. Scaling Up Renewable Energy Solutions: I’d like to see a strong emphasis on renewable energy solutions tailored for West Africa. If countries can align on expanding clean energy infrastructure, the region could take significant steps towards a sustainable energy future, reducing dependence on fossil fuels and supporting climate goals.

iii. Incentives for Private Sector Investment: Attracting private capital is crucial for scaling energy access and infrastructure. It would be valuable for summit discussions to identify ways to create more favorable environments for private investors, such as standardized regulatory frameworks, guarantees, and risk mitigation tools.

iv. Commitment to Policy and Regulatory Reform: Consistent and transparent policies are key to building investor confidence and achieving regional integration goals. I hope to see commitments from West Africa Governments to pursue regulatory reforms, improve governance in the Energy sector, streamline project approvals to accelerate timelines.

v. Enhanced Support for Regional Projects: There is also potential for multilateral cooperation that supports major regional projects. I’d like to see commitments from organizations like AfDB, ECOWAS, the WB and other stakeholders to invest in regional infrastructure that complements MCC’s work and helps drive sustainable growth.

If these discussions moved toward concrete commitments and action plans, the summit could be a real catalyst for achieving energy security and economic resilience across West Africa.

 

Neb Girma is speaking at the West Africa Energy Cooperation Summit (WA-ECS), taking place 3-5 December in Lome, Togo.