Liberia: EU Provides €56m Budget Support

Finance and Development Planning Minister Augustine Kpehe Ngafuan has described the European Union’s €56 million budget support to Liberia as a “vote of confidence” in the government’s reform agenda, stating that the direct grant demonstrates the EU’s strong trust in Liberia’s commitment to transparency, domestic revenue mobilization, and sound economic governance.

Ngafuan made the remarks during the official signing ceremony of the EU Budget Support Financing Agreement held on Tuesday, May 13, 2025, at the Ministry of Finance and Development Planning (MFDP) 2nd Floor Conference Room in Monrovia.

“On behalf of His Excellency President Joseph Nyuma Boakai, and the government and people of Liberia, I want to lift profuse thanks to the EU Ambassador, and through her, to the entire European Union community, for this generous support. This support is a grant, it’s not a loan,” said Minister Ngafuan.

“That’s one of the positive differences here – it’s a grant. To the people of Liberia, to the government of Liberia, for three years, an amount of €56 million, which translates to about US$62 million, at this rate. And another supplementary support through SIDA, that goes to also enhancing public financial management, to the tune of €7 million,” he added.

Ngafuan emphasized that the grant will directly benefit the national budget, enhance public financial management systems, and strengthen the General Services Agency (GSA), adding that the EU’s support sends a clear message of endorsement for the reforms currently underway in Liberia.

“The budget support comes directly to the government budget. It is a vote of confidence in the reform that we’ve initiated, working in partnership with the EU and other partners,” he said. “We have agreed indicators, and we have a policy dialogue framework that we take very seriously. The aim is to always proceed in ways to justify support.”

He further highlighted Liberia’s progress in domestic resource mobilization, noting that in 2024, out of a national budget of US$738 million, US$698 million was raised locally–over 90%.

“Ultimately, we want to reach a point where we depend largely, almost 100%, on our own resources for the development of this country. We are on that path,” Ngafuan noted.

He also disclosed plans by the Liberia Revenue Authority (LRA) to launch a major digitization effort this month, aimed at increasing efficiency and speeding up government processes.

“We are impatient with the delay. That’s why we are having these deep dive sessions all across the government, primarily aimed at understanding the challenges, so that we can collectively agree on how we unlock them,” he added, referencing ongoing consultations with key ministries and agencies.

Ngafuan praised the Auditor General and his team for their performance despite challenging conditions, pledging continued support to the General Auditing Commission (GAC) through both government and donor funding.

“We must do more. Because, as I usually say, the reward for doing a good job is the burden to do more,” he said. In closing, he praised the EU for “front-pedaling” its support while other partners scaled down their commitments.

“You are delivering on commitment. And in one instance, where one of our partners was stepping down on support, you were stepping up on support,” Ngafuan stated. “You are doing it for Liberia, and we as a government will try as much as possible to be worthy recipients of the support.”

Also speaking at the event, Ambassador Nona Deprez, Head of the EU Delegation to Liberia, reaffirmed the EU’s confidence in Liberia’s reform agenda and expressed satisfaction over the agreement’s finalization.

“We are really delighted to finally sign this financing agreement, which includes €56 million in direct budget support to Liberia’s treasury and €7 million for complementary measures,” said Ambassador Deprez. “This reflects our confidence in the government’s commitment to ambitious reforms, improved accountability, and better financial governance.”

She emphasized that the complementary funding, managed by SIDA, would focus on three areas: improving domestic revenue mobilization (particularly in the natural resources sector), strengthening audit institutions, and enhancing accountability through civil society engagement.

“This agreement is the result of many months of engagement, discussions, and negotiations. We thank all the ministries, agencies, and commissions for their openness in presenting their challenges and reform priorities,” she added. “Now the real work begins. We hope the first disbursement request will be submitted soon, and ideally, €22 million can be disbursed into the treasury in 2025.”

Ambassador Deprez stressed that the program aims to reinforce Liberia’s public finance systems, create a more investment-friendly environment, support local rice production, and help conserve the country’s protected areas.

Earlier, Tenneh G. Brunson, Deputy Minister for Budget and Development Planning, welcomed participants and acknowledged the significance of the partnership.

“Today’s occasion is more than a ceremony–it is a reaffirmation of our shared commitment to democratic governance, development, and the well-being of the Liberian people,” she said. “This support comes at a critical time as we manage fiscal constraints and strive to protect gains in economic management, agriculture, and transparency.”

Minister Brunson also praised the EU’s flexible approach and alignment with Liberia’s ARREST Agenda (Agriculture, Roads, Rule of Law, Education, Sanitation, and Tourism), stating, “The predictability of this support allows us to plan more effectively and align public spending with national priorities.”

She concluded by assuring the EU that Liberia remains committed to policy reforms, prudent fiscal management, and delivering tangible results. “Together, we can make steady progress toward a more resilient, inclusive, and prosperous Liberia,” Brunson stated.

The signing ceremony was attended by senior government officials, representatives from EU member states, development partners, and civil society leaders.

By Liberian Observer.