By Natalie Nkembuh
The Board of Directors of the African Development Bank Group has approved a financing package of $16.7 million for Liberia to support reforms aimed at strengthening fiscal sustainability and improving governance in the mining sector.
The financing represents the first phase of the Fiscal Sustainability and Mining Sector Governance Support Programme (FSMSG-SP), a two-year budget support operation designed to enhance economic governance and promote inclusive growth.
“By supporting key reforms, this operation will help expand the fiscal space needed to provide essential public services and strengthen accountability of public institutions,” said Lamin Barrow, Director-General for West Africa, African Development Bank Group.
The programme will strengthen debt management and improve transparency in public financial management.
Liberia has made progress in stabilising its macroeconomic framework in recent years, but continues to face structural challenges, including a narrow tax base, fiscal pressures, and governance constraints in the extractives sector. The programme will support reforms that will improve efficiency in tax administration, reduce revenue leakages, and enhance oversight of natural resources.
The programme aligns with Liberia’s national development priorities under the ARREST Agenda for Inclusive Development (2025–2029), which focuses on strengthening governance, revitalizing the economy, and promoting sustainable growth.
Key reforms supported through the programme will include measures to introduce a value-added tax system, improve public debt management frameworks, enhance procurement transparency, and strengthen anti-corruption mechanisms.
In the mining sector, the programme will contribute to improved regulatory frameworks, greater transparency and more effective oversight mechanisms, thereby helping to increase the sector’s contribution to government revenues.
The African Development Bank will continue to work closely with the Government of Liberia and other development partners to support reforms and promote economic resilience.