MONROVIA – Finance and Development Planning Minister Augustine Kpehe Ngafuan on Thursday, March 20, 2025, sounded the alarm over the financial strain caused by a recent reduction in USAID aid, warning that Liberia must urgently reprogram and redirect resources to sustain critical projects.
“We are facing a significant shock due to the USAID aid cut, and immediate measures are being taken to mitigate its impact,” Ngafuan stated on Thursday at the launch of the Governance Reform and Accountability Transformation (GREAT) Project, a World Bank-backed initiative aimed at strengthening public administration. Speaking at the Ellen Johnson Sirleaf Ministerial Complex in Congo Town, he stressed that the government is already engaged in difficult discussions to address the fallout.
The minister acknowledged that the aid reduction has resulted in job losses and reduced funding for vital sectors, making it imperative for the government to reallocate resources. He revealed that in April, the administration and its partners will convene a roundtable discussion to explore solutions and ensure the uninterrupted implementation of the ARREST Agenda for Inclusive Development.
Ngafuan described the launch of the GREAT Project as a critical step in Liberia’s efforts to modernize public administration and improve government efficiency. The $30 million initiative, funded by the International Development Association (IDA) of the World Bank, is set to run until 2030, focusing on expanding digital public services, increasing tax revenues, strengthening transparency, and enhancing accountability.
Acting World Bank Country Manager Oyewole Afuye emphasized that the project would address major governance challenges, including weak administrative service delivery, low domestic revenue generation, and inefficient management of public resources. He called on all government ministries, agencies, and development partners to support the initiative and ensure sustained policy reforms.
With Liberia’s financial stability under strain, Ngafuan reassured the public that the government remains committed to navigating the crisis while maintaining its development agenda. However, with USAID assistance diminishing, the success of ongoing reforms may hinge on how effectively the government reallocates its limited resources.
