The African Development Bank Group has approved a US$16.7 million financing package for Liberia to support reforms aimed at improving fiscal sustainability, strengthening public financial management, and enhancing governance in the mining sector.
The funding represents the first phase of the Fiscal Sustainability and Mining Sector Governance Support Programme (FSMSG-SP), a two-year budget support initiative designed to improve economic governance and support inclusive growth.
According to Lamin Barrow, the programme will help expand the government’s fiscal capacity to deliver essential public services while strengthening transparency and accountability across public institutions.
Focus on revenue generation and fiscal reforms
Liberia has made progress in stabilising its economy in recent years but continues to face several structural challenges, including a limited tax base, fiscal constraints, and governance weaknesses within key economic sectors.
The programme will support reforms intended to:
- Improve tax administration efficiency
- Reduce revenue leakages
- Strengthen public debt management
- Enhance transparency in public procurement
- Improve public financial management systems
- Reinforce anti-corruption measures
A major component of the reform agenda includes preparations for the introduction of a value-added tax (VAT) system, which is expected to broaden government revenue collection and reduce dependence on external financing.
Strengthening mining sector oversight
Mining remains one of Liberia’s most important economic sectors and a significant source of export earnings. However, policymakers have long sought to improve regulatory oversight and ensure that mineral resources generate greater benefits for public finances and national development.
Under the programme, reforms will focus on:
- Strengthening mining regulatory frameworks
- Improving transparency in resource management
- Enhancing monitoring and compliance systems
- Increasing accountability in the extractive industries
- Boosting government revenue collection from mining activities
Improved governance is expected to help maximise the contribution of Liberia’s mineral wealth to economic development while providing investors with a more transparent and predictable operating environment.
Supporting Liberia’s development agenda
The initiative aligns with Liberia’s ARREST Agenda for Inclusive Development, which prioritises economic revitalisation, governance reforms, institutional strengthening, and sustainable growth between 2025 and 2029.
By improving fiscal management and strengthening governance in the extractive sector, the programme aims to create a more resilient economic foundation capable of supporting long-term development objectives.
The African Development Bank indicated that it will continue working closely with the Liberian government and development partners to support policy reforms, strengthen institutions, and promote sustainable economic growth across the country.