By Bill W. Cooper
Finance and Development Planning Minister Augustine Ngafuan says the US Government freeze has direct and indirect impacts on Liberia’s development progress, especially health, education, and infrastructures, acknowledging several ongoing projects heavily affected by such action.
He outlined the implications of the United States Agency for International Development’s (USAID) action on several key developmental projects, including its US$17 million project to Liberia.
“USAID has been a crucial partner in our development journey, providing essential funding and technical supports that have helped us address pressing challenges and the suspension of these aids could hinder our efforts to improve the living conditions of our citizens and achieve our national development goals,” he noted.
The freeze of USAID aid to Liberia comes as a result of President Donald Trump’s recent Executive Order issued suspending all aid and support to other countries in fulfillment of his campaign promises.
In an interview with VOA’s James Butty, yesterday, Ngafuan also disclosed that the USAID was Liberia’s second largest donor besides the World Bank, financing key projects in health, education and agriculture as well as elections.
He is upbeat that Liberia is resilient and will overcome this latest obstacle in its developmental agenda but, outlined measures to counter the impact of the aid freeze, emphasizing increased domestic revenue mobilization and fiscal tightening.
According to him, the US$70 million project supported by the USAID was already driving tax system reforms; an initiative aimed to transition from a good and service tax to a value-added tax by 2026, alongside investments in training and digital tax systems.
Minister Ngafuan maintained, “The Agency had committed over US$443 million from 2022 to 2029, but with funding now on hold, critical projects, including improvements in tax administration, are being affected.”
The Minister revealed that the government is already putting into place austerity measures to address the situation and to intensify efforts to boost revenue collection and curb financial inefficiencies.
He noted, “We are engaging the Legislature on the short-term and long-term impact while also looking at new regional and social partnerships, especially within our region and other global nations.”
The Minister further announced that discussions are underway within regional blocs like ECOWAS and the AU to strengthen cooperation and minimize economic disruptions caused by the aid suspension.
Ngafuan added that despite the setback, the Liberian government remains optimistic in its pursuit to address the situation, adding that proactive measures will help stabilize the economy and ensure continued progress in key development sectors.