The European Union (EU) has reaffirmed its partnership with the Liberian government by committing 56 million Euros (US$62 million) in direct budget support through a new financing agreement.
Signing on behalf of the Government of Liberia Tuesday, May 13, 2025 in Monrovia, Liberia’s Minister of Finance and Development Planning, Augustine K. Ngafuan signed a €63 million (US$ 70 million) financing package, which includes €$56 million (US US$62 million) in direct budget support and an additional €7million (US $7.7 million) for complementary measures to strengthen public financial management and oversight.
Speaking during the signing ceremony, EU Ambassador, Madam Nona Deprez, said that the 56 million in direct budget support will be channeled through Liberia’s national systems, reinforcing the government’s capacity to deliver on its development priorities. According to her, the support is subject to several key conditions and general eligibility criteria to include, the existence of a credible national development plan, a robust public financial management reform agenda, and government’s commitment to macroeconomic stability and transparent budgetary processes.
Talking about the disbursement-linked indicators, Madam Deprez explained that as agreed upon jointly by the Government of Liberia and the EU Delegation, the indicators focus on strengthening public financial management and oversight systems, enhancing domestic revenue mobilization, particularly from the natural resources sector, improving transparency and accountability, creating a more conducive business environment for investment in local rice value chains and reinforcing Liberia’s network of protected areas.
She said that disbursements will be made based on demonstrated progress in implementing these agreed-upon reforms over the period 2025-2027. However, the EU Ambassador narrated that the EU’s use of direct budget support reflects its confidence in the Government of Liberia’s Commitment to pursue ambitious reforms, promote accountability, and improve financial governance.
According to her, the funding modality demonstrates a strong partnership and shared goals between the EU and Liberia in promoting good governance and sustainable development.
Madam Deprez stated that the US$7 million in complementary measures will provide technical assistance to enhance Liberia’s budgeting, auditing and domestic resource mobilization system. Additionally, she added that it will support civil society organizations in fulfilling their oversight roles vis-a-vis the government and legislature.
For his part, Finance Minister Ngafuan commended the EU on behalf of President Joseph Boakai and the people of Liberia, for its continued partnership and consistency.
“While some partners are retreating from their commitments, the European Union is standing firm and delivering for the Liberian people. This is truly commendable,” he said. He also reaffirmed Liberia’s ongoing efforts to boost domestic revenue generation to support key sectors of the economy.
