By: Julius Konton
The Ministry of Finance and Development Planning (MFDP) has concluded a day-long Public Financial Management (PFM) Donor Coordination Meeting, reinforcing Liberia’s commitment to fiscal discipline, transparency, and effective resource mobilization at a critical moment in the country’s economic recovery.
The meeting brought together representatives of the donor community, international development partners, and senior officials of the Government of Liberia, serving as a platform to review progress, identify gaps, and align priorities around ongoing PFM reforms.
Chaired by Minister of Finance and Development Planning, Augustine Kpehe Ngafuan, the session focused on strengthening financial oversight systems, improving domestic revenue generation, and ensuring the efficient use of public resources across government institutions.
A Reform Agenda Rooted in Post-Conflict Recovery
Liberia’s PFM reform drive is deeply rooted in its post-war reconstruction efforts following the end of the civil conflict in 2003.
Over the past two decades, successive administrations have worked to rebuild core state institutions, including budget planning, expenditure control, procurement systems, and audit mechanisms.
Despite notable progress, Liberia continues to face structural challenges, including limited fiscal space, heavy dependence on donor financing, and vulnerability to external economic shocks.
According to government and development partner assessments, external support still accounts for a significant share of public investment spending, underscoring the importance of donor coordination and fiscal credibility.
Focus on Accountability, Efficiency, and Resource Mobilization
During the meeting, Minister Ngafuan emphasized that strengthening PFM systems is not only a technical exercise but a governance imperative.
“Public Financial Management reforms are central to restoring confidence in government systems, improving service delivery, and ensuring that every dollar mobilized whether domestic or external delivers value to the Liberian people,” Ngafuan noted.
Discussions covered reforms in budget credibility, cash management, public procurement, internal controls, and audit processes, as well as strategies to expand domestic revenue through improved tax administration and compliance.
Participants also examined Liberia’s alignment with international benchmarks, including Public Expenditure and Financial Accountability (PEFA) frameworks, which are widely used by development partners to assess the strength of national financial systems.
Donor Confidence and Development Effectiveness
Development partners welcomed the engagement, noting that predictable and transparent financial systems are essential for effective aid delivery.
Donors increasingly require strong national PFM frameworks to channel funds through country systems rather than parallel structures.
Liberia’s efforts to improve budget transparency, reduce off-budget spending, and strengthen oversight institutions such as the General Auditing Commission (GAC) were highlighted as critical steps toward sustaining donor confidence.
The MFDP indicated that outcomes from the coordination meeting will inform upcoming policy actions and reform sequencing, particularly as Liberia seeks to balance economic stabilization, social spending, and long-term development goals.
As the government continues to pursue macroeconomic stability and inclusive growth, stakeholders agree that credible public financial management remains a cornerstone of Liberia’s governance and development trajectory.
