Says It Has Direct, Impact On Liberia’s Development.
Monrovia, Liberia – Liberia’s development would be impacted both directly and indirectly by the cancellation of the $17 million USAID-sponsored initiative and other projects in the nation, according to Augustine K. Ngafuan, Minister of Finance and Development Planning (MFDP).
On Wednesday, February 19, 2025, Minister Ngafuan said on Voice of America (VOA) that USAID was Liberia’s second-largest contributor after the World Bank, funding initiatives related to elections, agriculture, health, and education.
The Minister told VOA that Liberia is strong and would get over what he called the most recent setback in the country’s progress. “In a phone conversation with me today, the US Ambassador verified that the Local Empowerment for Accountability and Decentralization Project is one of the several initiatives that have been canceled by the aid cancellation program,” he explained.
He noted that the US$17 million initiative has aided Liberia in mobilizing its domestic resources and that the Liberia Revenue Authority (LRA) has set up an agenda to boost domestic income.
According to Minister Ngafuan, USAID is Liberia’s primary partner helping the government implement the new tax system, which includes investment, training, and a system, transitioning from the goods and services tax to the value added tax by 2026.
Finance Minister added that, USAID has also been supporting the country’s Etax database, which has helped it increase local revenue collection. Minister Ngafuan mentioned programs in the fields of education, health, agriculture, and elections that have been impacted by the US$17 million project cancellation, stating that USAID was Liberia’s second largest donor and has committed more than US$443 million from 2022 to 2029 besides the World Bank.
“This year, we have concluded an agreement for support of US$120 million to benefit mainly health, agriculture and health,” he added.
The finance minister disclosed that the Ministry of Finance has completed a report on the short- and long-term impact and what will be done, which has been submitted to the President and will be submitted to the Legislature.
He reported that, among other things, the MFDP will increase resource mobilization, engage partners, and tighten its face to reduce losses. “Liberia is also looking at regional and fiscal corporations and is enlisting new partners.”
He also mentioned that discussions are still going on among ECOWAS, AU, and other partners regarding what will be done collectively to lessen the impact on the nations.
