IPNEWS; The European Union (EU) has disbursed €21 million (approximately US$24.6 million) in direct budget support to the Government of Liberia, reaffirming its strong partnership with the country and signaling renewed confidence in Liberia’s ongoing reform agenda.
The payment marks the first tranche under a three-year €56 million (US$65.8 million) budget support program aimed at strengthening governance, improving public financial management, and advancing Liberia’s national development priorities.
EU Ambassador to Liberia, Nona Depreze, said Liberia qualified for the full 2025 allocation after meeting all agreed performance targets. She cited measurable progress in public financial management reforms, enhanced budget transparency, and improved oversight of natural resources as key factors behind the successful disbursement.
Under the arrangement, the funds will be channeled directly through Liberia’s national systems, a move the EU says is intended to strengthen institutional capacity while ensuring that external assistance aligns with domestic development priorities.
“This disbursement reflects Liberia’s demonstrated commitment to reforms and responsible economic management,” the EU said in a statement, adding that continued support under the program will depend on sustained progress and measurable results throughout the three-year period.
The budget support initiative is structured to release funds annually, subject to both specific reform benchmarks and broader eligibility requirements. These include the maintenance of a credible national development plan, continued improvements in public financial management, macroeconomic stability, and transparent budgeting practices.
Liberia’s Minister of Finance and Development Planning, Augustine K. Ngafuan, welcomed the disbursement, describing it as a vote of confidence in the government’s reform efforts at a critical time. He noted that the support will help finance priority expenditures without increasing the country’s debt burden, while reinforcing reforms aimed at improving accountability, efficiency, and service delivery.
According to the EU, the program targets several key reform areas, including strengthening public financial management and oversight institutions, enhancing domestic revenue mobilization—particularly from natural resources—and promoting transparency and accountability across government. Additional priorities include improving the business environment, supporting the development of local rice value chains, and expanding and strengthening Liberia’s network of protected areas.
Economic analysts note that direct budget support, when tied to strict performance conditions, can provide governments with needed fiscal flexibility while encouraging discipline and reform. In Liberia’s case, the EU has linked disbursements to governance reforms widely seen as essential to building long-term economic resilience.
Liberia’s economy, still recovering from years of civil conflict and the lingering impacts of the Ebola epidemic and the Covid-19 pandemic, remains vulnerable to external shocks. By meeting all agreed benchmarks for 2025, EU officials said Liberia demonstrated “tangible progress” in implementing its national development agenda.
They emphasized that the reforms are intended not only to strengthen government systems but also to deliver concrete benefits to citizens through improved public services, environmental protection, and job creation.
The European Union remains one of Liberia’s largest development partners, providing substantial support in governance, health, education, infrastructure, and environmental protection. The latest disbursement underscores what both sides describe as a partnership built on mutual accountability, shared priorities, and results-driven cooperation.
With the remaining €35 million expected to be released over the next two years, EU officials stressed that sustained progress will be essential. For Liberia, the challenge ahead will be to translate reform commitments and growing international confidence into lasting economic gains and improved living standards for its people.V
