Published: March 5, 2025
MONROVIA – The European Union (EU) Tuesday signed a new $21 million financing agreement with the Liberian government on Tuesday, coinciding with the suspension of all USAID aid globally. The agreement highlights the EU’s ongoing commitment to Liberia despite the disruptions in U.S. aid.
The agreement was signed by Erica Gerretsen, the EU’s Director for Human Development, Migration, Governance, and Peace, on behalf of the EU, and Liberia’s Finance Minister Augustine Kpehe Ngafuan, representing the Liberian government.
Gerretsen emphasized that the funds would be provided as a grant, not a loan, aimed at strengthening Liberia’s civil society. “We are signing two new financing agreement programs that are extremely important to our cooperation,” Gerretsen said, adding that the first program, valued at $7.3 million, focuses on improving the coordination of EU-Liberia development cooperation. This will build the capacity of civil society organizations (CSOs), NGOs, and institutions to reinforce social cohesion, public discourse, and governance oversight.
The second component of the funding, valued at $13.6 million, is part of the EU’s Spotlight Initiative, which targets eliminating all forms of violence against women and girls in Liberia. This initiative will focus on legislation, policy reform, economic empowerment, service provision, and strengthening women’s movements and civil society organizations.
Gerretsen assured that the EU’s partnership with Liberia is long-term: “The signing of this financing agreement is a signal that we are a reliable partner to Liberia.” The funds will be implemented by the UN Women, UNFPA, and UNDP, and are aimed at promoting good governance, gender equality, and sustainable development.
This new commitment is part of the EU’s broader financial support to Liberia, which typically receives around $100 million annually.
Minister Ngafuan expressed gratitude for the EU’s continued partnership, noting that despite the suspension of USAID aid, Liberia would endure with the support of the EU and other partners.
“The EU has been with us through thick and thin, and we are confident that we will overcome this challenge,” Ngafuan said.
He also reminded the public of Liberia’s resilience, recalling the country’s recovery from the Ebola outbreak in 2013-2014 and the COVID-19 pandemic, with support from international partners. “This too shall pass,” Ngafuan added.
In response to the cuts in U.S. foreign aid, Minister Ngafuan outlined measures the government is taking to mitigate the impact.
These include plans to expand the country’s domestic revenue by transitioning from a goods and services tax to a value-added tax (VAT), set to be rolled out in 2026. He pointed out that initial funding for the VAT initiative had come from USAID, before the cuts were announced.
In January, U.S. President Donald Trump announced the suspension of nearly 10,000 USAID foreign assistance grants and contracts, which left millions without support and has particularly affected underdeveloped countries like Liberia. USAID has been one of the largest contributors to global foreign aid, with Liberia receiving approximately $100 million annually, which accounted for about half of the country’s national budget.
The suspension of USAID funding has already had a significant impact on local NGOs in Liberia. Many of these organizations have relied heavily on U.S. support for their operations. In response, the Women NGO Secretariat of Liberia (WONGOSOL) has launched a nationwide survey to assess the effects of the USAID cuts on women-led organizations, local NGOs, and civil society groups across the country.
Despite these challenges, the EU’s renewed financial commitment underscores the continued international support for Liberia as it navigates these turbulent times.
Discussion about this post