Finance and Development Planning Minister Augustine Kpehe Ngafuan says Liberia has met three of the four primary economic benchmarks required under the West African Monetary Zone (WAMZ), placing the country closer to full macroeconomic convergence as regional leaders race toward the proposed 2027 launch of the West African single currency, the Eco.
Ngafuan, who chairs the WAMZ Convergence Council, made the disclosure Monday, September 7, 2026, while opening the 56th Meeting of the Council, held virtually with finance ministers, central bank governors and representatives of regional and international institutions.
He said Liberia satisfied WAMZ requirements covering the fiscal deficit, central bank financing of the budget deficit and gross external reserves in 2025, leaving inflation as the country’s only outstanding primary convergence hurdle. “Average inflation, though it declined markedly, remains the sole primary criterion still outside the threshold, and we are on track to close this gap by the end of 2026,” Ngafuan said.
The finance minister disclosed that Liberia’s external reserves position was recently revised upward to 3.2 months of import cover following an International Monetary Fund mission to the country.
Liberia also met both WAMZ secondary convergence benchmarks for the second consecutive year, according to Ngafuan. Public debt stood at 54.9 percent of GDP in 2025, below the regional ceiling of 70 percent, while exchange-rate variation against the West African Unit of Account remained within the prescribed ±10 percent band.
But Liberia’s progress comes as the wider region still faces significant hurdles ahead of the planned Eco rollout. Ngafuan disclosed that although convergence performance improved across the WAMZ in 2025, no member state met all four primary convergence criteria.
Compliance with the primary criteria increased from 41.7 percent in 2024 to 45.8 percent in 2025, while compliance with secondary criteria climbed to 91.7 percent. Overall convergence performance rose sharply from 52.8 percent to 61.1 percent.
“As we advance toward the 2027 target for the launch of the Eco, our collective progress will continue to be tested by external headwinds, geopolitical tensions, commodity price volatility, and structural constraints across our economies,” Ngafuan warned.
Despite those challenges, the finance minister painted an upbeat picture of Liberia’s economy, reporting that real GDP growth accelerated from 4.0 percent in 2024 to an estimated 5.1 percent in 2025 and is projected to reach about 5.5 percent in 2026.
He attributed much of the expected expansion to mining, particularly iron ore production, which is projected to more than double in 2026. The secondary sector is also projected to rebound from a 2.8 percent contraction to 5.9 percent growth, driven by increased cement and beverage production.
Ngafuan also pointed to a dramatic easing of inflationary pressure. End-period inflation fell from 10.7 percent in December 2024 to 4.0 percent in December 2025. Headline inflation, however, edged upward to 5.0 percent by June 2026 amid higher imported fuel costs. On the fiscal front, he reported that total revenue and grants jumped 18.6 percent to US$887.6 million in 2025, compared with US$748.2 million in 2024, supported by a 23.7 percent increase in tax revenue and what he described as the highest domestic revenue collection in Liberia’s history.
The improved fiscal performance, Ngafuan said, contributed to a reduction in Liberia’s public debt-to-GDP ratio from 56.4 percent in 2024 to 54.9 percent in 2025. He said the government is building on those gains through its record US$1.3 billion FY2026 national budget, designed to finance priorities under President Joseph Nyuma Boakai’s ARREST Agenda for Inclusive Development, with emphasis on agriculture, roads, rule of law, education, sanitation and tourism.
Ngafuan highlighted major road projects connecting Liberia with Sierra Leone, Guinea and Côte d’Ivoire, arguing that improved regional transport links will reduce logistics costs, boost cross-border commerce and strengthen economic integration.
He also pointed to the expansion of hydropower generation and electricity access, financial-sector reforms, digital tax administration, the Inclusive Instant Payment System and the operationalization of the Pan-African Payment and Settlement System as measures intended to modernize Liberia’s economy.
On tax reform, Ngafuan said Liberia is preparing for the introduction of a full Value Added Tax regime in January 2027 after increasing the Goods and Services Tax rate from 10 percent to 12 percent in 2024. Taxpayer registration for the VAT transition began in mid-2026.
Looking ahead, the Minister said Liberia’s economic outlook remains favorable, with growth expected to remain around 5.1 to 5.5 percent through 2026. Average inflation is projected to decline from 8.5 percent in 2025 to about 6.3 percent in 2026 and 5.3 percent in 2027.
However, he warned that domestic structural bottlenecks, the suspension of USAID-supported programs in 2025, global trade tensions and geopolitical instability could undermine progress by keeping international fuel and food prices elevated.
Against those risks, Ngafuan urged WAMZ governments to accelerate fiscal, monetary and structural reforms, warning that the success of the proposed Eco will depend on countries demonstrating sustained economic discipline rather than merely meeting a political deadline.
“It is therefore incumbent upon all of us, as custodians of this shared vision, to sustain the transformative monetary, fiscal, and structural reforms that will secure a stable and prosperous monetary union for the peoples of West Africa,” he said.
Ngafuan reaffirmed Liberia’s commitment to the WAMZ and ECOWAS single-currency programs, declaring that the country will continue working to close its remaining inflation gap as West Africa approaches what could become one of the most consequential monetary integration projects in the region’s history.
