The Trump administration has abruptly shuttered the Millennium Challenge Corporation (MCC), a U.S. agency responsible for over $17 billion in infrastructure and governance projects across Africa and other developing regions, marking a seismic shift in U.S. foreign development policy.

MCC executives announced the agency’s “orderly closure” to staff on Wednesday, confirming the immediate discontinuation of all active programs worldwide. The decision followed a memo citing a “significant reduction” imposed by Elon Musk’s Department of Government Efficiency, with most employees facing termination.

Created in 2004 under President George W. Bush with bipartisan backing, the MCC partnered with nations meeting strict governance and transparency standards, funding critical infrastructure like roads and electricity grids to drive sustainable growth. Its closure leaves numerous projects, including a $500 million compact signed with Zambia in October 2024 for roads, irrigation, and power upgrades, at risk of incompletion unless new funders emerge.

The move follows the dissolution of the U.S. Agency for International Development (USAID) and aligns with President Trump’s skepticism of foreign aid, prioritizing policies with direct U.S. benefits. Critics warn the shutdown could erode U.S. influence in the Global South, ceding ground to China’s expanding Belt and Road Initiative.

Development experts caution that the MCC’s closure may weaken America’s soft power and leadership in global development, with lasting consequences for partner nations and U.S. strategic interests. (ILKHA)