By Amin Kef (Ranger)
In a landmark agreement aimed at revolutionizing Sierra Leone’s energy sector, the United States Millennium Challenge Corporation (MCC) and the Government of Sierra Leone signed a $480 million compact on Saturday, September 27, 2024. This historic compact includes $480 million in grant funding from the U.S. Government, supplemented by a $14.2 million contribution from Sierra Leone, marking a significant step toward improving the country’s energy infrastructure and fostering sustainable economic growth.
The compact seeks to address key challenges in Sierra Leone’s energy transmission system, aiming to provide affordable and reliable electricity to households, businesse and social institutions across the country. By enhancing energy availability, the initiative promises to improve the quality of life for Sierra Leoneans, boost private sector development, and drive economic growth.
“This compact is a testament to the strong partnership between the United States and Sierra Leone,” remarked U.S. Ambassador to Sierra Leone, Bryan Hunt. “By investing in the country’s energy infrastructure, we will help overcome barriers to human development and unlock the potential for private sector-driven economic growth. Our goal is to support a more prosperous and thriving Sierra Leone.”
However, the compact’s success is tied to Sierra Leone’s continued commitment to advancing democratic values, combating corruption and investing in its people. Eligibility for the compact remains conditional on meeting specific benchmarks throughout the agreement’s duration. This includes full implementation of the Agreement for National Unity and the recommendations of the Tripartite Committee, which emphasize cooperation between the ruling Sierra Leone Peoples Party (SLPP) and the opposition All Peoples Congress (APC). Additionally, reforms in electoral processes and accountability for violence linked to the 2023 election cycle will be pivotal for the compact’s success.
In the signing ceremony, held at the MCC Headquarters in Washington, D.C., bipartisan support from the U.S. Congress further underscored the importance of this compact in strengthening the bilateral relationship between the two nations. The Energy Compact is expected to have a transformative impact on Sierra Leone, expanding and upgrading the national transmission grid, improving access to electricity in urban areas, and enhancing the financial stability of the energy sector through governance reforms and institutional strengthening.
The new compact builds on the success of the 2016 MCC-funded $44.4 million Threshold Program, which helped Sierra Leone improve its water and electricity services. His Excellency, Rt. Brig. Dr. Julius Maada Bio, reflected on the enduring partnership between the United States and Sierra Leone, stating, “We are deeply grateful for the long-term commitment of the American people to Sierra Leone’s progress.”
The MCC Compact reflects the shared values of both nations—democracy, good governance and sustainable development. It further reaffirms Sierra Leone’s ongoing efforts to empower its citizens, particularly through initiatives like electoral reforms, legislation protecting the rights of women and girls and the implementation of the free quality school education program.
This groundbreaking energy agreement is poised to benefit over 4 million Sierra Leoneans by increasing the availability of affordable and dependable electricity, creating opportunities for economic development, and improving living standards.
The Sierra Leonean Government’s $14.2 million contribution toward the compact highlights its dedication to ensuring the compact’s success and signals a bright future for the country’s energy sector, which is expected to drive broader economic growth and development.
At the signing ceremony, President Julius Maada Bio expressed his optimism about the deepening ties between the two nations. “I am filled with joy and optimism about Sierra Leone’s future and its partnership with the United States of America,” he said. “This momentous occasion underscores our shared vision of promoting sustainable development for our people.”
The President highlighted that improving access to reliable, affordable electricity would serve as the engine for economic growth, innovation and poverty reduction. “Access to sustainable electricity is not just about lighting homes or powering industries; it is the key to growth, fostering innovation and lifting communities out of poverty,” he emphasized.
The compact’s investment will address the country’s energy deficit, enhancing electricity generation, expanding transmission capacity and strengthening regulatory frameworks to ensure long-term sustainability.
“This Power Compact represents a historic investment that directly addresses one of our country’s most critical challenges: the power deficit,” President Bio remarked. He further stressed that the initiative aligns with Sierra Leone’s Medium-Term National Development Plan, which prioritizes energy as a catalyst for industrialization, education and healthcare improvements.
The compact will also bridge the urban-rural electrification gap, delivering much-needed power to underserved communities. President Bio emphasized the importance of creating an inclusive energy system that benefits all Sierra Leoneans, regardless of location.
Expressing his gratitude to the United States and the MCC for their support, President Bio praised the partnership as a model of cooperation and mutual respect. “The MCC partnership has been a model of cooperation and mutual respect, and this latest compact reinforces the trust and shared vision we have built over the years,” he said.
The President reaffirmed his Government’s commitment to the compact’s implementation, pledging transparency and accountability throughout the process. “As has been our tradition, we will continue to engage transparently and ensure accountability at every step,” he vowed.
Looking ahead, President Bio expressed confidence that the compact would position Sierra Leone as a significant player in the regional energy market, fueling industrial growth and economic development. He concluded, “This compact is a promise of a brighter future, where reliable power will drive industrial growth, create jobs for our youth and improve health and education outcomes.”
The signing of the MCC Power Compact marks a turning point for Sierra Leone’s energy sector, setting the foundation for long-term sustainable development and economic prosperity for its citizens.
