U.S. signs first compact after Trump aid cuts, boosts West African power grid

By Millennium Challenge Corporation

U.S. signs first compact after Trump aid cuts, boosts West African power grid

Deputy Secretary of State Christopher Landau joined officials from Côte d’Ivoire to sign the Regional Energy Compact agreement at the State Department on September 10, marking a major U.S. investment in West Africa’s electricity sector, according to MCC. The Millennium Challenge Corporation compact aims to expand access to reliable electricity across the region while creating opportunities for American companies and supporting US jobs. The agreement builds on MCC’s track record of partnering with governments to boost private sector growth and increase prosperity.

West Africa faces significant energy challenges that limit economic development and cross-border trade opportunities. The new compact focuses on modernizing Côte d’Ivoire’s electricity sector and connecting regional power networks to lower costs for families and businesses. Improved energy infrastructure will help boost private sector activity and create a stronger foundation for international commerce throughout the region.

The signing follows the closure of MCC’s previous $500 million compact with Côte d’Ivoire, which ran from 2017 to August 2025 and improved education and transportation infrastructure. That program upgraded road networks and built modernized technical training centers to prepare workers for the job market.

“Energy powers opportunity,” said MCC Acting Vice President Jason Small, who will travel to Abidjan this week to celebrate the old compact’s completion.

Deputy Secretary Landau emphasized the strategic benefits for America. “This compact reflects President Trump’s commitment to smart, accountable development that advances US interests,” he said.

A stronger energy sector in West Africa creates new markets for American companies while contributing to regional stability that benefits American interests globally.

This Regional Energy Compact in Côte d’Ivoire is the first Compact signed in 2025 by MCC, after the completion of Foreign Assistance Review for MCC’s portfolio carried out after Trump Administration Executive Order 14169, titled “Reevaluating and Realigning United States Foreign Aid”.