President Donald Trump’s administration has ordered the closure of the Millennium Challenge Corporation (MCC), a U.S. agency known for its billions of dollars in investments in infrastructure projects across Africa and other developing nations. The decision, conveyed to staff on Wednesday, signals an abrupt end to the MCC’s operations and potentially cedes more influence in the developing world to China.
The MCC, founded in 2004 under President George W. Bush with bipartisan support, was designed to fund large-scale infrastructure projects in countries that demonstrated good governance and economic transparency. Over its two-decade history, it has invested over $17 billion globally in initiatives such as roads, energy grids, and water systems, often with an emphasis on enabling private sector-led development.
The closure follows directives from Elon Musk’s Department of Government Efficiency, which cited a “significant reduction” in the agency’s scope and funding. Most staff are expected to be laid off, and current projects will be wound down unless other partners intervene.
While the Trump administration had previously shut down the U.S. Agency for International Development (USAID), the MCC was considered distinct due to its focus on economic infrastructure rather than humanitarian aid. “We are very much building up an environment for private-sector investment,” said one MCC staff member, who spoke anonymously to avoid retribution.
The impact of the closure will be far-reaching. In October 2024, Zambia signed a $500 million compact with the MCC to improve transportation and energy infrastructure. Similar projects in Senegal, Nepal, Mongolia, and Ivory Coast will now face uncertain futures. Only these four countries have been granted temporary extensions to ensure minimal disruption or safety risks at active sites.
Critics warn the move undermines U.S. strategic interests. “MCC offers a sustainable, values-driven alternative to China’s influence,” said Elizabeth Hoffman of the anti-poverty group ONE. Chinese President Xi Jinping recently pledged $51 billion for African development over three years, bolstering Beijing’s presence in the region.
The Trump administration and MCC have yet to officially comment on the termination, first reported by Devex.
