MONROVIA – The recent signing of a €63 million financing package between the European Union and the Republic of Liberia marks a significant enhancement of their partnership.
The agreement was formalized during a ceremony in Monrovia, where Liberia’s Minister of Finance and Development Planning, Augustine Kpehe Ngafuan, officially signed the deal.
This financing package consists of €56 million (approximately US$62 million) allocated for direct budget support, which is crucial for the country’s financial stability and development.
Additionally, €7 million (around US$7.7 million) is earmarked for complementary reforms aimed at improving governance and public financial management.
This initiative is expected to boost Liberia’s economic growth and enhance its governance structures.
This financial commitment highlights the European Union’s significant investment in West Africa, particularly in Liberia. It indicates strong support for Liberia’s ongoing reforms and development efforts.
By channeling funds through the national systems, the EU aims to enhance the government’s ability to execute its development priorities effectively.
This strategic investment is likely to bolster Liberia’s economic growth and stability, fostering a positive trajectory for the nation.
This direct budget support is designed to promote essential reforms in various sectors. Here’s a brief overview of the key components:
The support will be provided from 2025 to 2027, disbursements of funds will depend on meeting specific eligibility criteria and performance benchmarks.
Enhancing the management of public funds to ensure efficiency and effectiveness and increasing the capacity to generate revenue domestically, reducing reliance on external funding.
Transparency and accountability ensuring that public service delivery is conducted openly and that officials are held accountable for their actions.
This initiative aims to strengthen governance and improve service delivery in Liberia, fostering sustainable development and economic growth.
Speaking at the signing event, Finance Minister Ngafuan lauded the EU for what he described as “a clear demonstration of trust in Liberia’s development path and a timely contribution to our reform momentum.”
He emphasized the government’s readiness to meet its obligations under the agreement and its commitment to sound fiscal governance.
The European Union’s Ambassador to Liberia also hailed the agreement as a milestone in EU-Liberia relations.
“This budget support program reflects our shared vision for a stable, prosperous, and accountable Liberia,” Ms. Ambassador Nona Deprez, Head of EU Delegation to Liberia.
“We believe in Liberia’s potential and we are committed to being a strong and reliable partner in its journey toward inclusive and sustainable development.”
