The European Union has come to Liberia’s rescue with a Euros 56 million Financing Agreement to boost the country’s national budget.
By Lewis S. Teh
Monrovia, Liberia, May 15, 2025, – In a frantic effort to supporting Liberia’s development drives amidst suspension of USAID-funded projects across the country, the European Union and the Government of Liberia have signed a Euros 56 million Financing Agreement or an equivalent of US$62 million, to boost the country’s National Budget.
Speaking at the official signing ceremony Tuesday, May 13, 2025, at the ministry of finance and development planning in Monrovia EU Ambassador to Liberia, Madam Nona Deprez, expressed delight to have finally signed the financing agreement for European Union budget support to the Republic of Liberia.
Ambassador Deprez says the 56 million euros grant is in direct support to the budget and 7 million euro grants for complementary measures, with the ultimate goal of increasing Liberia’s autonomy with less dependency on external financing sources.
“The European Union’s use of direct budget support reflects our confidence in the Government of Liberia’s commitment to pursue ambitious reforms, promote accountability and improve financial governance, and this funding modality demonstrates a strong partnership and shared goals between the European Union and Liberia in promoting good governance and sustainable development”, the EU Ambassador explains.
According to her, for the complementary measures, the project is foreseen to be managed by the Swedish International Development Agency or SIDA, which will be comprised of free work streams, improved public finance management systems and domestic revenue mobilization, including natural resources. Secondly, stronger accountability and transparency for civil society and better capacitated audit systems.
The Ambassador discloses that signing of the financing agreement was a culmination of many months of engagements, conversations, discussions, and negotiations with the Government of Liberia.
She extends appreciation to all ministries, agencies and commissions that were engaged in the discussion to share with the EU their assessment of needs and challenges, the Government of Liberia’s reform agenda, as well as reflecting how these policy objectives could best translate in a transformational but realistic and measurable indicators over the coming three years.
“We know this is only the start of the journey, because now the real work starts, so we need to keep on engaging very regularly until the Government of Liberia can submit a disbursement request, hopefully still this year, so that hopefully we could still disburse about 22 million euros maximum into the treasury in 2025”, Deprez reveals.
Accordingly, the EU envoy notes that the reforms that they are embarking on is to strengthen public finance management and oversight systems, to enhance domestic revenue mobilization, particularly from the natural resources sector, improve transparency and accountability, and to create a more conducive business environment for investment in local rice value chains, and also to reinforce Liberia’s network of protected areas.
“So we look forward to continue to work with you, so that this program can be a successful indicator of the achievement and the implementation of Liberia’s ambitious reforms”, she says.
In response, Liberia’s Minister of Finance and Development Planning, Augustine K. Ngafuan, appreciates the EU envoy and her team on behalf of President Boakai and the citizenry.
“I want to say again, on behalf of President Joseph Nyuma Bokai and the government, the people of Liberia, to say thank you to the EU family. You’ve been a friend, indeed. We are at pivotal times. We’ve been facing some turbulence and some trumps”, Minister Ngafuan notes.
He praises the EU for standing alongside Liberia during it’s difficult times, saying “in some respects, some of our partners have been backpedaling on commitments, cancelling commitments. But you are front pedaling on commitment; 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. So, I want to say thank you on behalf of the Liberian people who remember you. You are doing for us so that we can do for ourselves”, Ngafuan adds.
He says the ultimate aim of the government’s arrest agenda is to transform lives of people across the 15 counties, and on behalf of Liberians, expresses thanks to the EU.
“You are doing it for Liberia, and we as a government will try as much as possible to be worthy recipients of the support.”
Minister Ngafuan notes that the EU support is a grant, not a loan, saying it’s a grant to the people of Liberia, to the Government of Liberia, for three years.
He informs the EU envoy that the budget support comes directly to the government budget, saying “It is a vote of confidence in the reform that we’ve initiated, working in partnership with the EU and other partners. We have agreed indicators, and we have a policy dialogue framework that we take very seriously.”
He says the aim is to always proceed in ways to justify support, noting the current support is going to help the government to strengthen its ability to generate revenue for the citizenry.
He says ultimately, the government wants to reach a point where the people can depend largely, almost 100%, on their own resources for development.
We are on that path. Last year, of the $738 million budget, we raised $698 million through domestic resource mobilization. So, that was upwards, I think, of 90%. So, we intend that the government’s contribution to the budget will continue to increase, as we expand the tax base through a package of measures, including principally improving efficiency, he underscores. Editing by Jonathan Browne
