By: Zac T. Sherman and G. Watson Richards
MONROVIA, — The European Union has reinforced its longstanding partnership with the Republic of Liberia through the signing of a significant €63 million (US $70 million) financing package. At a ceremony held in Monrovia, Liberia’s Minister of Finance and Development Planning, Augustine Ngafuan, signed the agreement, which includes €56 million (US $62 million) in direct budget support and an additional €7 million (US $7.7 million) dedicated to complementary reforms in governance and public financial management.
This financial commitment represents one of the EU’s most substantial recent investments in West Africa and is seen as a firm vote of confidence in Liberia’s reform trajectory. The funds will be disbursed through Liberia’s national systems and are intended to support the government’s capacity to implement its development priorities.
The direct budget support component will span the period 2025 to 2027 and is conditioned on a set of eligibility criteria and performance benchmarks. According to officials from both the Liberian government and the EU Delegation, disbursements will be made based on progress in several reform areas, jointly agreed upon by the two parties. These areas include improvements in public financial management, domestic revenue mobilization, and increased transparency and accountability in public service delivery.
A key focus of the agreement is enhancing oversight and efficiency in Liberia’s use of public funds. Strengthening institutions that manage financial resources, particularly in critical sectors such as natural resource governance, forms a major pillar of the EU’s support.
The financing package also targets reforms aimed at creating a more attractive business environment—specifically in the agriculture sector. By promoting investment in Liberia’s local rice value chains, the program seeks to reduce import dependence and stimulate domestic food production. Another important aspect of the program is environmental sustainability, with resources earmarked to help protect Liberia’s rich biodiversity through the expansion and strengthening of the country’s network of protected areas.
Beyond the direct fiscal injection, the EU has allocated €7 million for complementary measures that will provide technical assistance and capacity building. These measures are designed to support critical reform components including budget transparency, internal and external auditing systems, and more effective tax collection strategies. Importantly, civil society organizations will also receive support to bolster their role in holding government accountable and promoting public participation in policy-making.
Speaking at the signing event, Finance Minister Augustine 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,” he said. “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.”
As Liberia continues to recover from years of economic hardship and seeks to position itself for long-term growth, the EU’s budget support initiative comes at a pivotal moment. It not only injects critical financial resources into the national budget but also reinforces the institutional frameworks necessary for building a more resilient and transparent public sector.
With implementation now underway, both Liberian and EU officials are looking ahead to sustained collaboration and measurable progress in the country’s governance and economic reform agenda over the next three years.
