MCC opens door to Ghana again as MiDA revives development partnership

The Millennium Challenge Corporation (MCC) has suggested a potential return to Ghana as a development partner, as the United States agency convened a high-level delegation from the Millennium Development Authority (MiDA) in New York. The discussions centered around Ghana's future economic transformation, reviewing the country's past Compacts and exploring new areas of collaboration. Among the potential areas of cooperation are energy and regional power integration.

Jason Small, Acting Vice President for Compact Operations, stated that Ghana's track record with MCC would be a crucial factor should the country seek another compact. He further explained that MCC would assess the prospects for increased U.S. investment, U.S. exports, and the development of supply chains involving critical materials and minerals.

For countries like Ghana, which have already implemented MCC programmes, the agency would also examine the performance of previous investments, whether reforms have been sustained, and how the country might demonstrate its progress.

The $498.2 million Ghana Power Compact, signed in 2014, was fully implemented through MiDA after the termination of the ECG-PDS concession in 2019. Energy remains a potential gateway for renewed cooperation, with opportunities to strengthen Ghana's electricity grid, improve distribution company performance, and deepen regional electricity integration across West Africa.

MCC has also revisited regional energy infrastructure involving Ghana and neighboring countries, including proposed transmission interconnectors between Ghana and Côte d'Ivoire and Ghana and Burkina Faso. MiDA, which builds on MCC's legacy, is expected to weigh the evidence before deciding which countries should be selected for new compact development.