Finance Minister Ngafuan Unveils Liberia’s Bold Five-Year Development Plan, Targets Middle-Income Status by 2029

By Julius T. Jaesen II
Managing Editor

December 25, 2024 – Monrovia, Liberia – In a candid and reflective interview on Prime FM on the eve of Christmas, Liberia’s Minister of Finance and Development Planning, Hon. Augustine Kpehe Ngafuan II, detailed significant strides made since his appointment in September 2024. Minister Ngafuan emphasized the urgency and determination that have characterized his leadership, particularly in the preparation of the 2025 national budget and the formulation of the country’s new National Development Plan, the Arrest Agenda for Inclusive Development (AID).

Taking office at the tail end of the fiscal year, Minister Ngafuan described his immediate entry as akin to stepping onto a “battlefront.” His focus was clear: ensuring the timely preparation of the 2025 fiscal budget and finalizing the National Development Plan, both crucial for Liberia’s economic stability and growth. Historically, late budget submissions have plagued Liberia, leading to delayed execution and subsequent economic stagnation. However, under his leadership, the 2025 budget was completed by October 8, well ahead of previous timelines.

The Arrest Agenda for Inclusive Development (AID), finalized in late November and endorsed by the National Steering Committee chaired by the President earlier in December, will serve as Liberia’s overarching five-year development roadmap from 2025 to 2029. Minister Ngafuan disclosed that the formal launch of the plan is set for mid-January 2025, with suggestions leaning towards holding the event in Margibi County. The development agenda is aligned with global and regional frameworks, including the United Nations Sustainable Development Goals (SDGs), the African Union’s Agenda 2063, and ECOWAS Vision 2050.

A unique feature of the AID, according to the Minister, is its integration with 15 county-specific development agendas, ensuring that each county’s priorities are addressed in alignment with the national plan. This localized approach stemmed from extensive consultations across the country, where citizens voiced their needs and aspirations. Minister Ngafuan highlighted that these priorities are also being harmonized with frameworks from key development partners such as the World Bank and the United Nations.

Despite Liberia’s constrained fiscal space, Minister Ngafuan reported an increase in the 2024 budget from $738 million to $878 million, a notable boost but still far below the $2 billion in funding requests submitted by ministries and agencies. He was transparent about the reality that not every need can be met immediately but emphasized a strategic, phased approach to addressing Liberia’s critical challenges.

The Minister also touched on institutional culture and work ethics within the Ministry of Finance and Development Planning. He acknowledged that change is gradual and likened the process to turning around a massive vessel rather than a speedboat. Ngafuan emphasized his commitment to leading by example, recalling long hours and tireless efforts during the budget preparation process, with work often extending past 2 a.m., including weekends and holidays.

On the structural changes within the Ministry, Ngafuan noted that the current workforce is smaller than during his previous tenure over a decade ago, primarily due to the establishment of the Liberia Revenue Authority (LRA) as an autonomous body. Despite the leaner workforce, he underscored the importance of efficiency over sheer numbers, focusing on maximizing productivity and accountability among staff.

Looking ahead, Minister Ngafuan laid out Liberia’s ambitious economic targets under the National Development Plan. By 2029, the government aims to elevate Liberia’s GDP per capita from $849 to $1,050, pushing the country closer to middle-income status. Additionally, multidimensional poverty is targeted for reduction from 45% to 36%.

Minister Ngafuan concluded on a note of cautious optimism, reiterating that while immediate transformation is unrealistic, the foundations for meaningful change are being solidly laid. “We are on a path of improvement on all fronts,” he said, urging stakeholders, development partners, and citizens to align with the national vision for sustainable growth and development.

The upcoming formal launch of the Arrest Agenda for Inclusive Development in January 2025 is expected to set the stage for collaborative efforts between the government, development partners, and local communities in addressing Liberia’s socio-economic challenges.