Finance and Development Planning Minister Augustine Kpehe Ngafuan has called for an urgent reprogramming of government projects in response to the recent reduction in USAID aid, warning that the cut presents a significant economic challenge for the country.
Speaking at the launch of the Governance Reform and Accountability Transformation (GREAT) Project, a US$30 million World Bank-funded initiative, on Thursday at the Ellen Johnson Sirleaf Ministerial Complex in Congo Town, Minister Ngafuan stressed that immediate fiscal adjustments are necessary to mitigate the impact of the aid reduction.
"We are facing a significant shock due to the USAID aid cut, and immediate measures are being taken to mitigate its impact," Minister Ngafuan stated.
Hard Conversations underway
Ngafuan emphasized that tough discussions are already taking place across the government to reassess spending priorities, ensuring that resources are directed toward critical sectors affected by the aid reduction.
"Many Liberians have lost their jobs, interventions to vital sectors have been reduced, and it is essential for us to implement critical measures," he said.
He revealed that the government, in collaboration with international partners, will convene a high-level roundtable discussion in April to address the emerging fiscal challenges and strategize on solutions to ensure the uninterrupted implementation of the ARREST Agenda for Inclusive Development, launched in January.
"We must make tough decisions to keep our economy stable and ensure that essential government services continue without disruption," Ngafuan added.
Reallocating resources for impact
The Finance Minister indicated that the government is reviewing existing projects, identifying those that are not yielding the desired results, and reallocating funds toward priority areas such as education, healthcare, infrastructure, and social services.
"We cannot afford to invest in projects that are failing to deliver results, especially at a time when external funding is shrinking," he stated. "Our goal is to ensure that every dollar spent is making a meaningful impact on the lives of Liberians."
Minister Ngafuan urged all government agencies and development partners to align their efforts with the government's fiscal realignment strategy to navigate the current economic uncertainty effectively.
"The challenges we face are real, but with a collective effort, strong reforms, and responsible fiscal management, we will overcome them," he assured.
The launch of the GREAT Project, a six-year governance reform initiative, comes at a crucial time as Liberia seeks to modernize public administration, increase transparency, and strengthen accountability. The project, approved on June 12, 2024, and set to run until November 30, 2030, is funded by the International Development Association (IDA) of the World Bank.
Acting World Bank Country Manager Oyewole Afuye lauded the Liberian government for its commitment to institutional reforms, emphasizing that the project will play a pivotal role in leveraging digital solutions to enhance government efficiency.
"The GREAT Project will help modernize public administration, improve service delivery, and strengthen accountability mechanisms, ultimately benefiting all Liberians," Afuye said.
He outlined that the project will address three key challenges: weak administrative service delivery due to low state presence and inadequate infrastructure, fiscal constraints caused by low domestic resource mobilization, and limited accountability in public resource management, which has led to uneven service delivery results.
The event was attended by key government officials, international partners, and development agencies.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Madam Christian Umutoni, UN Resident Coordinator to Liberia, hailed the project as a game-changer for governance reforms.
"Good governance and accountability are the foundation for sustainable development," Umutoni remarked. "Liberia's commitment to transparency and digital transformation is commendable, and this project will help prevent corruption and improve public service delivery."
However, several government institutions are set to benefit from the GREAT Project, including the Ministry of Post and Telecommunications, the Ministry of Internal Affairs, the Liberia Revenue Authority, the National Identification Registry, the General Auditing Commission, the Public Procurement and Concessions Commission, and the Liberia Anti-Corruption Commission.
The project will focus on expanding digital public services, strengthening tax revenue systems, enhancing transparency, and improving institutional capacity.
