Liberia: Ngafuan Pitches Ambitious Strategy for Liberia’s Economic Growth

In a highly anticipated Senate confirmation hearing, Augustine Kpehe Ngafuan, President Joseph Nyuma Boakai’s nominee for Minister of Finance and Development Planning, presented an extensive and ambitious plan for Liberia’s economic future.

Addressing the Ways, Means, Finance, and Budget Committee, Ngafuan outlined his vision to tackle the country’s fiscal challenges and steer Liberia towards sustainable development.

Ngafuan, who spoke on Thursday, September 5 during his confirmation hearing at the Liberian Senate, commenced his testimony with a heartfelt acknowledgment of his nomination.

“I come in genuflection (bow) to the Almighty God, the Omnipotent, the Omniscient, and the Omnipresent, who has made this day possible,” he said.

He expressed profound gratitude to President Boakai for his trust and to the Senate for the opportunity to present his vision. “I thank President Boakai for nominating me to lead our nation’s fiscal house,” Ngafuan added.

Ngafuan likened his nomination to a call to duty, comparable to a veteran summoned back to the battlefield. “My nomination by President Boakai can be likened to a Commanding-In-Chief summoning a reservist, an old soldier back to the battlefront,” he remarked.

With humility and dedication, he pledged to prioritize Liberia’s needs above all else. “I solemnly pledge to use all the fibers of my being in the noble mission of defending our nation’s cause and putting Liberia first,” he assured.

Ngafuan outlined his strategic priorities, focusing on a comprehensive overhaul of Liberia’s fiscal policies. He stressed the importance of aligning the national budget with the new ARREST Agenda for Inclusive Development (AAID).

“Our development agenda must be the bedrock of our national budget,” he emphasized. Ngafuan committed to driving the AAID process to completion, aiming for its official launch by November of this year. “One of my top priorities will be to drive the process to its logical and timely conclusion,” he said.

Addressing the country’s immense development challenges, Ngafuan proposed a multi-faceted approach to increase national revenue. He called for significant improvements in the energy sector, including enhancing power generation capacity and expanding electricity access year-round.

“We must take robust actions to improve our power generation capacity and increase access to electricity in both the rainy and the dry seasons,” he stated. He also highlighted the need to connect all counties with paved roads and maintain existing farm-to-market roads. “Connecting all our counties with paved roads will improve the profitability of businesses, lead to the expansion of the private sector, and create jobs for more Liberians,” Ngafuan explained.

Ngafuan expressed strong support for the “Liberians Feed Yourselves Agenda,” which aims to achieve national food self-sufficiency and foster indigenous wealth through agricultural value-chain development.

“Supporting the NADP will contribute over US$1.3 billion to our economy and create job opportunities for over 60% of our workforce,” he noted. He pledged to collaborate closely with the Ministry of Agriculture and sector partners to meet the ambitious targets set in the plan. “I intend to work hand in glove with the Ministry of Agriculture and all the partners in the sector to fulfill the targets set in the NADP,” he affirmed.

Ngafuan emphasized the need to reform key revenue-generating sectors, including mining. Despite the mining sector’s contribution to economic growth, he noted that mineral royalties fell below target by 38% in 2023.

“This troubling reality in the mining sector points to the need for a deep dive review of key revenue-generating sectors,” he said. Ngafuan pledged to work with the Liberia Revenue Authority (LRA) and other relevant bodies to unlock the revenue potential of these sectors.

He also proposed several measures to enhance revenue generation, including improving support for the LRA to leverage technology and close revenue leakages.

“We will support the LRA’s intention to fully leverage technology and digitization to significantly increase government revenue,” he stated. Ngafuan committed to fostering value-addition and ‘Made in Liberia’ initiatives through appropriate incentives and protection, which he believes will boost revenue and create jobs.

To improve the efficiency of the budget process, Ngafuan proposed realistic revenue forecasting and streamlining budget execution. “More realistic revenue forecasting contributes significantly to the credibility of the budget,” he explained.

He pledged to develop average timelines for processing documents at the Ministry of Finance to reduce delays. “My goal is to lead a Ministry where documents move through the system without unnecessary delays,” he said. Ngafuan highlighted the need to fully leverage technology, including the IFMIS system, to enhance business processes.

Ngafuan committed to improving compliance with financial management laws and regulations. “We must ensure robust implementation of financial regulations to prevent fraud and waste,” he said. He promised to work closely with the General Auditing Commission (GAC) and other oversight bodies to enhance compliance and strengthen their capacity.

Addressing concerns about the Pay Harmonization Program, Ngafuan promised a thorough review. “An appropriately incentivized and motivated government workforce is critical,” he said.

He vowed to work with relevant stakeholders to address genuine concerns about the policy and find realistic solutions. “We must strike the right balance between maintaining a sustainable public service wage bill and paying government employees decently,” he emphasized.

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Ngafuan highlighted the importance of disciplined debt management, noting that Liberia’s total debt stock had reached US$2.58 billion as of June 2024.

“We are nearing the threshold where we risk being labeled as a country with high debt distress,” he warned. He emphasized the need for transparent and accountable debt management, ensuring that new debt is contracted responsibly and sustainably. “We must approach debt repayment with discipline, transparency, and accountability,” he said.

Ngafuan underscored the need to actively support Liberia’s climate action agenda and leverage available climate finance opportunities. “We must position ourselves to take full advantage of all available climate finance opportunities to fund our development agenda,” he stated.

He also highlighted the importance of balancing conservation and commercialization of Liberia’s natural resources.

Ngafuan concluded his address by emphasizing the importance of collaborative leadership. “I understand the role of a Minister is primarily that of a leader,” he said, likening his role to that of a choir director guiding a team.

He pledged to leverage the collective wisdom of the Ministry of Finance and Development Planning to achieve success. “For the government as a whole to work well, the Ministry of Finance and Development Planning must work well,” he concluded.

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