U.S. Government Approves $480 Million Grant to Boost Sierra Leone’s Energy Sector

The United States Government has officially approved a $480 million Millennium Challenge Corporation (MCC) Compact for Sierra Leone, a major move that will support the country’s energy sector.

This Compact is designed to modernize Sierra Leone’s power system by expanding the national electricity grid, improving electricity distribution, and strengthening institutions that manage the energy sector. The Government of Sierra Leone will also contribute an additional $14.2 million to support the program.

Sierra Leone is one of only 12 countries in the world and one of just 5 in Africa that qualified for this MCC Compact. The U.S. government’s approval is seen as a vote of confidence in Sierra Leone’s ability to deliver results and grow its economy.

Sierra Leone’s electricity sector faces serious challenges. As of 2022, only 29.4% of the population had access to electricity, far below the global average. In rural communities, access is even lower, and power supply is often unreliable due to limited infrastructure and weak distribution systems.

The country relies heavily on hydropower, with the Bumbuna hydroelectric plant serving as the main source of electricity. However, this plant struggles with seasonal changes and aging equipment, leading to frequent shortages.

This funding is expected to bring more affordable and reliable electricity to homes and businesses across the country, helping businesses grow, creating jobs, and attracting more foreign investors.

The Compact was signed in September 2024 and comes at a time when relations between Sierra Leone and the U.S. are getting stronger. According to the Ministry of Information and Civic Education, this partnership will also support long-term trade and business between the two countries.

The government credits President Julius Maada Bio’s leadership for this achievement. His focus on economic reforms, infrastructure, and strong international partnerships helped secure the deal.

Sierra Leone’s government says it is ready to begin implementing the Compact and will continue to work closely with the United States to grow commercial and investment ties.

This MCC approval is a major step toward solving Sierra Leone’s electricity problems and creating a stronger economy for all