MCC opens door to Ghana again as MiDA revives development partnership

The Millennium Challenge Corporation (MCC), a United States development agency, has signaled its renewed interest in partnering with Ghana, as evidenced by the recent high-level delegation from the Millennium Development Authority (MiDA) visiting New York. The delegation, led by MiDA's CEO Alexander Kofi-Mensah Mould and Board Chairman Charles Abugre, met with MCC officials Jason Small, Acting Vice President for Compact Operations, and Senior Policy Advisor Tariq Ahmed to discuss Ghana's future economic transformation and potential collaboration opportunities.

The discussions centered on Ghana's longstanding partnership with MCC, the lessons learned from the country's two completed Compacts, and the prospects for renewed cooperation in areas such as energy and regional integration. Small emphasized that Ghana's track record with MCC, including the performance of previous investments, would be a crucial factor in determining if the country is eligible for a new compact.

The $498.2 million Ghana Power Compact, signed in 2014, was implemented by MiDA after MCC de-obligated the $190 million portion conditional on the successful execution of the ECG-PDS concession in 2019. The remaining program was completed in June 2022, with energy remaining a potential gateway for renewed cooperation. Small highlighted the potential of Ghana's electricity grid, distribution companies, and regional electricity integration, as well as the possibility of natural gas infrastructure linking Ghana and Nigeria to support regional power generation.

MCC's broader assessment framework, which considers American returns such as U.S. investment opportunities, U.S. exports, and the development of supply chains around critical materials and minerals, could add a new dimension to Ghana's future cooperation discussions. However, the MCC Board would need to evaluate the available evidence before deciding on any future compacts.