Ngafuan Calls for New Development Financing Model | Business

Finance and Development Planning Minister Augustine Kpehe Ngafuan has called for a renewed approach to development financing, deeper economic reforms, and stronger public-private partnerships as Liberia works to sustain economic growth in the face of increasing global economic pressures.

Minister Ngafuan said Liberia’s development aspirations can no longer depend on traditional sources of financing alone, emphasizing the need for a diversified financing strategy that combines domestic resource mobilization, concessional financing, private sector investment, climate financing, and strategic international partnerships.

The Finance Minister made the remarks Thursday at the Sinkor Palace Hotel in Monrovia during the official launch of the African Development Bank’s (AfDB) 2026 Liberia Country Focus Report and the 2026–2031 Country Strategy Paper.

The high-level gathering brought together senior government officials, African Development Bank representatives, members of the diplomatic corps, development partners, civil society organizations, and private sector actors.

According to Ngafuan, the two publications provide critical guidance for Liberia’s economic transformation agenda by combining evidence-based analysis with a practical financing framework for the years ahead.

He praised the African Development Bank for what he described as its longstanding partnership, policy support, and continued confidence in Liberia’s development prospects.

“We appreciate the African Development Bank for its steadfast partnership, policy leadership, and unwavering confidence in Liberia’s development journey,” Ngafuan said.

The Minister described the simultaneous launch of the Country Focus Report and Country Strategy Paper as a significant milestone, noting that both documents serve complementary purposes.

He explained that while the Country Focus Report provides an assessment of Liberia’s macroeconomic outlook, financing gaps, and reform priorities, the Country Strategy Paper outlines the Bank’s medium-term approach to financing, technical assistance, policy engagement, and knowledge support.

Ngafuan said the theme of the 2026 Country Focus Report — “Mobilizing Liberia’s Development Financing at Scale in a Fragmented World” — reflects the difficult economic environment confronting developing nations while also highlighting opportunities available to countries committed to implementing sound reforms.

He acknowledged that global uncertainty, shifting development priorities, and declining external financing flows have created new challenges for countries like Liberia.

However, he maintained that Liberia remains positioned to benefit from Africa’s broader economic growth trajectory if it continues pursuing responsible economic management and structural reforms.

Referencing the African Development Bank’s continental economic assessment, Ngafuan noted that 22 African countries, including Liberia, recorded economic growth above five per cent last year, demonstrating that growth remains possible despite global challenges.

“Liberia remains part of Africa’s growth story,” the Minister said, while emphasizing that sustainable progress will require stronger institutions, improved governance, and innovative approaches to financing development.

Reflecting on Liberia’s economic journey, Ngafuan said the country’s ability to overcome multiple crises demonstrates the resilience of its people and institutions.

He highlighted Liberia’s experience during the Ebola outbreak, which claimed more than 5,000 lives, saying the crisis ultimately strengthened the country’s public health systems and improved preparedness for future emergencies, including the COVID-19 pandemic.

According to the Minister, Liberia’s response to successive shocks provides important lessons about the importance of institutional reform, international cooperation, and national ownership of development priorities.

Ngafuan also addressed one of Liberia’s most significant recent economic challenges — the loss of more than US$300 million in external project financing following the withdrawal of one of the country’s largest development partners, the United States Agency for International Development (USAID).

He said the financing disruption created significant pressure on government programmes and development priorities but insisted that Liberia’s economy remained stable because of deliberate policy actions.

The Finance Minister credited stronger domestic revenue collection, improved tax administration, increased digitization, enhanced transparency measures, and efforts to eliminate revenue leakages for helping the government maintain fiscal stability.

“The sky did not collapse on our heads,” Ngafuan remarked, emphasizing that the government remained focused on protecting macroeconomic stability despite the major financing setback.

He said the experience reinforced the need for Liberia to reduce dependence on external assistance by strengthening domestic financing capacity and creating a more attractive environment for private investment.

The Finance Minister reaffirmed the government’s commitment to sound macroeconomic management and reforms aimed at creating inclusive and sustainable economic growth.

He stressed that Liberia’s future development will require stronger collaboration between government, development institutions, private sector actors, and citizens.

According to Ngafuan, the country must continue investing in reforms that improve public financial management, strengthen institutions, expand economic opportunities, and unlock private sector participation.

He said the African Development Bank’s new Country Strategy Paper provides an important roadmap for supporting Liberia’s development priorities while helping the government mobilize resources needed to achieve long-term economic transformation.