With Mr. Augustine Ngafuan now confirmed as the Minister of Finance and Development Planning, Liberia stands at a pivotal moment in its economic development. Mr. Ngafuan's confirmation comes with the responsibility of guiding the nation's economic policies and addressing the significant challenges that lie ahead. During his recent confirmation hearing before the Honorable Liberian Senate's Ways, Means, Finance, and Budget Committee, Mr. Ngafuan presented a bold and comprehensive vision that seeks to address the profound economic challenges Liberia faces, including resource allocation; revenue generation; budget credibility and efficiency; compliance with financial management laws & regulations; debt management; and climate action. His proposed strategies, if implemented effectively, could steer Liberia toward a path of sustainable and inclusive growth.
Aligning the National Budget with the ARREST Agenda
One of Mr. Ngafuan's central themes is the alignment of Liberia's national budget with the ARREST Agenda for Inclusive Development (AAID). This strategy is essential for directing resources toward the most pressing needs of the nation. However, for this alignment to be successful, it must be inclusive and comprehensive, reflecting the aspirations of all Liberians. This requires extensive stakeholder engagement, including consultations with local communities, civil society, and the private sector. There should also be clear mechanisms for aligning donor support and international cooperation frameworks with the AAID, ensuring that all external assistance contributes directly to successfully implementing the national development agenda. There must be a robust monitoring and evaluation framework to track progress and adapt to evolving priorities, ensuring that the AAID remains a dynamic and responsive tool for development.
Unlocking Liberia's Economic Potential
Mr. Ngafuan rightly emphasizes the need to generate increased resources to address Liberia's development challenges. His approach includes enhancing energy access, improving infrastructure, supporting agriculture, and boosting revenue from key sectors. Public-private partnerships (PPPs) are crucial in this context, particularly in the energy and infrastructure sectors. The National Agricultural Development Plan (NADP) 2024-2030 must be fully supported through targeted investments in agricultural value chains; this includes providing farmers with access to technologies to improve productivity, improving irrigation systems to support year-round farming activities, and facilitating access to markets. Strengthening extension services and promoting agro-processing will help create jobs.
Mr. Ngafuan's emphasis on broadening the tax base and improving tax compliance is commendable. The Ministry of Finance and Development Planning should collaborate with the Liberia Revenue Authority (LRA) to strengthen institutional capacity within the LRA, undertake a comprehensive review of revenue-generating potential, enforce concession agreements rigorously, and establish a robust monitoring system to ensure accurate accounting for the exportation of natural resources. Strategic investments should be directed toward closing revenue leakages through technology and digitization, while efforts are made to expand the tax base by enhancing real estate tax collection, improving the ease of doing business, incentivizing private sector growth, and integrating the informal sector into the formal economy.
Restoring Public Trust through Budget Credibility and Efficiency
A budget is only as good as its implementation. The persistent problem of budget shortfalls and overestimations has eroded public trust in government finances. Improving the credibility and efficiency of Liberia's budget process is another key priority. This involves realistic revenue forecasting, reducing bureaucratic delays, and ensuring timely government payments. By modernizing the Integrated Financial Management Information System (IFMIS) and adopting newer technologies, the Ministry of Finance and Development Planning can streamline budget execution and enhance transparency. Capacity-building initiatives should also be implemented across all government ministries and agencies to improve the technical skills of key personnel in revenue forecasting and budget management, this would ensure that budget estimates are realistic and aligned with the national development goals, thus prioritizing the avoidance of budget shortfalls and maintaining the credibility of fiscal policies. Regular and timely budget performance reporting to the legislature, as required by law, is essential for maintaining fiscal credibility and ensuring that government policies align with the national development goals.
Improving Compliance with Financial Management Laws & Regulations.
Mr. Ngafuan committed to working with relevant stakeholders to implement an overarching comprehensive public financial management reform, recognizing its critical importance. Leveraging his experience with the previous Public Financial Management Reform Strategy and Action Plan, while incorporating new robust measures should enable the Ministry to lead reforms in the Legislature and the work of the Legislative Budget Office, and the Public Accounts Secretariat. This effort places greater emphasis on improving coordination in expenditure management, resource mobilization, budget preparation, financial reporting, and both external and internal debt audits. This involves stricter enforcement of existing laws and strengthening the capacity of transparency institutions like the General Auditing Commission (GAC) and the Public Procurement and Concessions Commission (PPCC). Mr. Ngafuan must also focus on addressing corruption, which continues to undermine economic development efforts.
Safeguarding Liberia's Future
As Liberia's debt levels near the critical threshold of a 60% debt-to-GDP ratio, Mr. Ngafuan emphasizes the necessity of prudent debt management. The Ministry of Finance and Development Planning must prioritize debt sustainability analyses before entering into new debt agreements. This approach requires rigorous cost-benefit analyses of proposed projects, to ensure that borrowed funds are used for productive investments that stimulate economic growth, and loans are secured under favorable terms. Additionally, the government should actively seek opportunities to restructure existing debt arrangements to achieve more advantageous terms and collaborate with the World Bank and other development partners to creatively expand the fiscal space, allowing for alternative financing options that minimize the fiscal burden. Transparency in debt management is also essential, with regular public reporting on the status and utilization of borrowed funds.
Integrating Climate Action into Development Strategy
Mr. Ngafuan's recognition of the growing threat of climate change and the need for climate resilience is a forward-looking aspect of his strategy and recognizes the long-term risks to Liberia's development. The government must ensure the integration of climate resilience across all sectors, particularly agriculture, forestry, mining, energy, and coastal areas; this ensures the protection of our vulnerable communities and natural resources while promoting economic growth. Liberia must leverage international climate finance, ensuring its transparent use for adaptation and mitigation projects critical to accomplishing this objective. Integrating climate resilience into infrastructure planning, disaster preparedness, and environmental protection programs will be vital to safeguarding Liberia's future.
Call to Action
Mr. Augustine Ngafuan's priorities present a framework for addressing Liberia's economic challenges. However, the success of these initiatives is contingent upon strategic implementation and unwavering commitment from national leadership. By embracing these strategies, Liberia has the opportunity to overcome its current constraints and establish a foundation for sustained and inclusive growth. The choices we make today will shape the future of Liberia, and the urgency for decisive action cannot be overstated.
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It is now incumbent upon Mr. Ngafuan to demonstrate strong leadership and secure the necessary political and financial support from other national leaders in the executive and legislative branches, as well as from our international partners and the Liberian public. Transforming these priorities into actionable policies that deliver tangible benefits to the people of Liberia is essential. Our economic future stands at a critical juncture, and with the right steps, Liberia can emerge stronger, more resilient, and more prosperous.
About the Authors:
J. Mawolo Baysah is a dynamic leader and problem solver with expertise in strategy consulting, data analytics, systems engineering, financial analysis, and education. As the Managing Partner of Wuteve Consultancy Services Inc. and an adjunct professor of statistics at the University of Maryland Global Campus, his work spans multiple disciplines, focusing on innovation and systems problem-solving. He holds a PhD from the Department of Systems Science and Industrial Engineering at Binghamton University in New York.
Isaac Vah Tukpah, Jr. is a certified Project Management Professional (PMP) with extensive experience leading IT, business development, and operations projects. His work spans healthcare technology, finance, operations, and cybersecurity across public and private sectors.
He has a passion for innovation and is a Principal Partner of Wuteve Consultancy Services Inc., and a serial entrepreneur with ownership interests in ventures in geospatial services, fintech, procurement, agriculture, and technology. Isaac holds an MBA from the University of Maryland's Robert H. Smith School of Business.
