By Alfie Barrie
The Millennium Challenge Corporation (MCC) Board of Directors has on Wednesday June 26, 2024 approved a substantial $480 million compact grant for investments in Sierra Leone’s energy sector.
President Dr. Julius Maada Bio expressed his excitement over the MCC’s decision, stating, “I am thrilled that the Millennium Challenge Corporation (MCC) Board of Directors approved the $480 million investment for Sierra Leone’s Energy Compact. This significant investment in our country’s energy sector will undoubtedly have a positive impact on the lives of citizens. It also reinforces our commitment to promoting good governance and sustainable development.” He extended his profound gratitude to the MCC Board of Directors for their belief in Sierra Leone.
Vice President, Dr. Mohamed Juldeh Jalloh, who has been overseeing the Sierra Leone Compact Development Unit, also shared his enthusiasm. “This is a momentous occasion and a tangible step towards transforming Sierra Leone’s energy sector and ensuring our people will have access to reliable and affordable power. It will accelerate private sector development and sustainable economic growth,” he tweeted on X.
The MCC’s approval of the $480 million investment reflects recognition of Sierra Leone’s progress in implementing the Agreement for National Unity, including advancements such as the draft Electoral Review Committee report, which is expected to be finalized and published soon.
The compact aims to improve the availability of affordable and reliable electricity, addressing the needs of households, businesses and social institutions. In Sierra Leone, where 70 percent of the population lacks access to electricity, this investment is crucial for delivering affordable energy to 4.6 million people.
The decision to approve the compact underscores the MCC’s mission to spark economic growth, reduce global poverty, promote democracy and directly benefit people in need. The $480 million Energy Compact is expected to bring transformational changes by expanding and strengthening the national transmission backbone, increasing access to electricity in major towns, and enhancing the sector’s financial viability through governance reforms and institutional strengthening.
This milestone follows successful negotiations held in May 2024 in Washington, DC, led by Sierra Leone’s Minister of Finance, which ensured alignment with the prevailing challenges in the energy sector. Upon signing, Sierra Leone’s Energy Compact will become one of the largest per capita investments in the sub-region by the MCC.
President Bio highlighted the significance of this investment, stating, “The Energy Compact is a significant investment in our country’s future, ensuring that our citizens have access to affordable and reliable power to drive economic growth and opportunity. This approval paves the way for a transformative partnership between Sierra Leone and the United States. I commend all those who have worked tirelessly to make this milestone a reality.”
The compact is expected to be signed soon, marking a deepened partnership between the Republic of Sierra Leone and the United States, committed to supporting Sierra Leone’s economic development.
