AfDB Endorses Gov’t’s Reform Agenda with New Country Strategy Paper | Business

The African Development Bank (AfDB) has officially launched its 2026 Liberia Country Focus Report and 2026–2031 Country Strategy Paper (CSP), unveiling an ambitious roadmap to support Liberia’s economic transformation through large-scale development financing, expanded infrastructure, private sector growth, improved skills development, and stronger fiscal reforms.

The launch, held Thursday, brought together senior government officials, representatives of the African Development Bank, the World Bank, development partners, the private sector, civil society organizations, academia and youth groups. 

Speaking on behalf of the Government of Liberia, Finance and Development Planning Minister Augustine Kpehe Ngafuan described the two documents as complementary instruments that will shape Liberia’s economic future and strengthen the country’s partnership with the African Development Bank.

“It is a privilege to join you on behalf of the Ministry of Finance and Development Planning and the Government of Liberia for the dual launch of the African Development Bank’s 2026 Liberia Country Focus Report and the 2026–2031 Country Strategy Paper,” Ngafuan said. “Allow me to express our sincere appreciation to the Bank for its steadfast partnership, policy leadership, and unwavering confidence in Liberia’s development journey.”

According to the minister, the Country Focus Report provides an analytical assessment of Liberia’s macroeconomic outlook, financing needs and reform options, while the Country Strategy Paper translates those findings into a structured framework for the Bank’s financing, technical assistance, policy dialogue and knowledge support over the next five years.

Ngafuan said the theme of the 2026 Country Focus Report, “Mobilizing Liberia’s Development Financing at Scale in a Fragmented World,” could not have come at a more appropriate time, noting that it reflects the difficult realities confronting developing countries while highlighting opportunities for sustained economic growth.

“As I emphasized recently at the launch of the Africa Macroeconomic Performance and Outlook Report in Abidjan, Africa remains a global growth frontier,” he said. “Liberia is part of that frontier. The African Development Bank’s continental analysis shows that 22 African countries, including Liberia, recorded growth above five percent last year. That momentum is not accidental. It is the product of resilience, reform and partnership.”

The Finance Minister acknowledged that the global economy continues to face tighter financing conditions, rising debt vulnerabilities, climate-related shocks, geopolitical uncertainty and increasing pressure on development financing. Nevertheless, he maintained that Liberia has consistently demonstrated resilience in the face of major national and international crises.

Reflecting on Liberia’s post-war recovery, Ngafuan recalled that following the civil conflict, the country’s debt-to-GDP ratio exceeded 700 percent. He credited years of economic reforms and international cooperation for helping Liberia overcome that crisis.

“Through sustained reform efforts and strong international cooperation, including with the African Development Bank, we secured debt relief covering 90 percent of our obligations, laying the foundations for macroeconomic stability,” he said.

The minister also pointed to Liberia’s response to the Ebola epidemic, which claimed more than 5,000 lives, saying the tragedy ultimately strengthened national institutions and improved the country’s ability to respond effectively to the COVID-19 pandemic.

He further cited the government’s handling of the abrupt loss of more than US$300 million in external project financing following the withdrawal of Liberia’s second-largest development partner last year.

“When Liberia abruptly lost over US$300 million in external project financing following the exit of our second-largest partner, the sky did not collapse over our heads,” Ngafuan declared. “We maintained fiscal stability through enhanced domestic resource mobilization, improved tax administration, digitization, transparency, and efforts to eliminate revenue leakages.”

According to the minister, these experiences have reinforced the government’s determination to mobilize domestic resources more effectively, protect fiscal and debt sustainability while financing high-impact development priorities, use public resources to leverage private investment and development partner financing, and strengthen national institutions so that every dollar mobilized delivers measurable economic and social value.

“Public resources alone cannot meet Liberia’s development ambitions,” he emphasized. “A balanced financing strategy must combine stronger domestic revenue, concessional resources, climate and regional financing, private investment, guarantees, risk-sharing instruments and carefully structured partnerships.”

Ngafuan reaffirmed the government’s commitment to sound macroeconomic management and outlined several major reforms intended to create conditions for inclusive and resilient growth. Among them is the planned introduction of a Value Added Tax (VAT), which he said will broaden Liberia’s revenue base while improving fairness and efficiency in the tax system.

He also pledged continued efforts to strengthen public financial management, improve expenditure control and value for money, deepen debt transparency, reinforce governance and accountability, and create a more credible environment for private investment, enterprise development and job creation.

“These reforms are not ends in themselves,” he said. “The ultimate purpose is to improve public service, expand economic opportunity and raise living standards across Liberia.”

Ngafuan welcomed the African Development Bank’s new Country Strategy Paper, saying it aligns closely with Liberia’s national development priorities by emphasizing inclusive infrastructure, human capital development, market-relevant skills and private sector growth.

He argued that investments in roads and energy must be viewed as integrated development programs rather than isolated projects.

“Liberia requires road and energy systems that connect productive communities to markets, lower the cost of doing business and improve access to health, education and essential services,” he said. “Road investments should connect farms to markets, counties to economic centres and Liberia to neighbouring regional trade corridors.”

He added that energy investments should provide reliable and affordable electricity to households, hospitals, schools, farms, agro-processing facilities and businesses, stressing that infrastructure should be climate resilient and supported by strong institutions.

“Infrastructure must be climate resilient, safe and supported by strong institutions. Project success should be measured by reductions in travel time and production costs, growth in trade and investment, improved service access, and jobs created—not only by physical outputs.”

Describing Liberia’s youthful population as its greatest asset, Ngafuan stressed that technical and vocational education must be closely aligned with labour market demands.

He highlighted the government’s Youth Apprenticeship and Internship Program as well as the expansion and modernization of Technical and Vocational Education and Training (TVET), saying Liberia must produce more technicians, electricians, engineers, construction workers, health professionals, agro-processors, digital specialists and entrepreneurs capable of driving economic growth.

Turning to the private sector, Ngafuan said the government wants businesses to become the principal engine of economic diversification, innovation and job creation. He welcomed AfDB support for credit facilities, guarantees, trade finance, risk-sharing arrangements, commercially viable public-private partnerships and expanded financing opportunities for small and medium-sized enterprises, women-owned businesses, youth-led enterprises and businesses operating outside Monrovia.

The minister also acknowledged longstanding concerns over Liberia’s mining sector, noting that while mining has been one of the country’s principal drivers of economic growth, public revenues have historically remained far below the wealth generated by private operators.

“Mining has been a major driver of growth, but revenues have historically remained low compared to what private entities earn,” Ngafuan observed, adding that reforms supported by the African Development Bank are intended to ensure that Liberia’s natural resource wealth delivers greater benefits to the Liberian people.

Speaking on behalf of AfDB Country Manager Rees Mwasambili, Acting Officer-in-Charge John Bosco Bukenya reaffirmed the Bank’s commitment to Liberia’s development agenda and described the launch as an important milestone in strengthening cooperation among government, development partners, civil society and the private sector.

“The report examines Liberia’s recent economic performance and prospects and explores how the country can unlock significant public, private and development financing to accelerate economic transformation, create jobs, reduce poverty and strengthen resilience,” Bukenya said.

He explained that the newly approved 2026–2031 Country Strategy Paper was developed following extensive consultations with government institutions, development partners, civil society organizations and the private sector.

According to him, the strategy seeks to support “a competitive and resilient private sector through infrastructure and skills development,” focusing on investments that improve connectivity, expand energy access, strengthen human capital and create opportunities for young people and women.

Bukenya noted that the strategy is fully aligned with President Joseph Nyuma Boakai’s ARREST Agenda for Inclusive Development and reflects the growing recognition that sustainable economic transformation requires stronger collaboration between the public and private sectors.

He observed that Liberia continues to demonstrate resilience despite multiple global and domestic shocks and said the country possesses significant opportunities in agriculture, mining, energy, infrastructure, digital transformation and entrepreneurship.

“Harnessing these opportunities will require innovation, sound policies, institutional strengthening, adequate financing and, most importantly, collaboration among all key stakeholders,” he said.

He assured the audience that the African Development Bank remains committed to supporting Liberia’s efforts toward economic diversification, job creation, regional integration and long-term resilience.

Concluding the ceremony, Ngafuan reaffirmed the government’s commitment to translating the recommendations contained in both publications into concrete policies and investments through fiscal discipline, transparency, institutional coordination and evidence-based decision-making.

“We will continue to promote fiscal discipline, transparency, institutional coordination and evidence-based decision-making,” he pledged. “Let this dual launch mark the beginning of a renewed phase of disciplined delivery, one in which sound analysis informs policy, strategic financing supports productive investment, and implementation produces tangible improvements in the lives of the Liberian people.”

He then officially declared the 2026 Liberia Country Focus Report and the 2026–2031 African Development Bank Country Strategy Paper for Liberia launched.