The Millennium Challenge Corporation (MCC) and the Government of Sierra Leone have signed a $480 million agreement aimed at improving access to affordable and reliable electricity for millions of people in Sierra Leone. MCC Chief Executive Officer Alice Albright and Sierra Leone’s Minister of Finance, Sheku Bangura, signed the compact.

Sierra Leone faces significant energy challenges, with 70 percent of the population currently lacking access to electricity. The five-year grant, along with an additional $14.2 million from the Sierra Leonean government, is expected to provide electricity to 4.6 million people.

The compact includes three major projects designed to strengthen the country’s energy infrastructure:

  1. Transmission Backbone Project – This project will expand the electricity transmission network, improving service reliability and enabling energy trading with other West African countries.
  2. Distribution and Access Project – Aimed at improving grid reliability and increasing access to electricity, this project will target schools, health facilities, businesses, and households.
  3. Power Sector Reform Project – This initiative will focus on reducing energy costs, attracting private investment, and improving regulations in the energy sector.

Use of hydropower

Sierra Leone’s energy sector relies heavily on hydropower, with the Bumbuna Hydroelectric Plant being the country’s largest source of renewable energy. However, seasonal variations in water availability often limit hydropower generation, causing frequent power shortages. The new investments under the MCC compact aim to diversify the energy supply and strengthen the grid, improving year-round energy availability.

The signing follows progress made by the Government of Sierra Leone in electoral reform and political dialogue. MCC officials expect continued efforts in these areas as part of the broader partnership.

MCC and Sierra Leone have a history of collaboration, starting in 2014 with a $40.54 million program that supported reforms in the water and electricity sectors. The current compact builds on this foundation, with the goal of promoting long-term economic growth and development.

The MCC, a US government agency, provides financial assistance to countries committed to good governance and democratic principles, aiming to reduce global poverty.