Good News for Civil Servants, GoL -EU Commits €56 Million in Budget Support to Liberia

MONROVIA – The European Union (EU) has reaffirmed its partnership with the Republic of Liberia by committing €56 million in direct budget support through a new financing agreement.

“Today, Liberia’s Minister of Finance and Development Planning, Augustine Ngafuan, signed the €63 million (US $ 70 million) financing package, which includes €56 million (US $62 million) in direct budget support and an additional €7 million (US $7.7 million) for complementary measures to strengthen public financial management and oversight.

The €56 million in direct budget support will be channeled through Liberia’s national systems, reinforcing the government’s capacity to deliver on its development priorities.

The support is subject to several key conditions that include General eligibility criteria.

“These include the existence of a credible national development plan, a robust public financial management reform agenda, and government commitment to macroeconomic stability and transparent budgetary processes,” a press statement.

It adding another eligible criterion – Disbursement-linked indicators. Under this, it is agreed upon jointly by the Government of Liberia and the EU Delegation, these indicators focusing strengthening public financial management and oversight systems, enhancing domestic revenue mobilization, particularly from the natural resources sector, improving transparency and accountability, creating a more conducive business environment for investment in local rice value chains and Reinforcing Liberia’s network of protected areas.

“Disbursements will be made based on demonstrated progress in implementing these agreed-upon reforms over the period 2025-27,” the release said.

Significance of EU Budget Support

The EU’s use of direct budget support reflects its confidence in the Government of Liberia’s commitment to pursue ambitious reforms, promote accountability, and improve financial governance. This funding modality demonstrates a strong partnership and shared goals between the EU and Liberia in promoting good governance and sustainable development.

Objectives of the Complementary Measures

The €7 million in complementary measures will provide technical assistance to enhance Liberia’s budgeting, auditing, and domestic resource mobilization systems. Additionally, it will support civil society organizations in fulfilling their oversight roles vis-à-vis the government and the legislature.