Published: September 18, 2024
Last updated: September 17, 2024
MONROVIA — On Monday, September 16, 2024, during a turnover event, Finance and Development Planning Minister Hon. Augustine Kpehe Ngafuan made a compelling case for greater efficiency within government operations.
Minister Ngafuan addressed the critical need for the government to streamline its processes and cut out unnecessary delays. He emphasized that the Ministry must play a key role in speeding things up and ensuring that operations run smoothly without constant intervention.
“We need to rethink how we handle allotments and expenditures,” Ngafuan explained. “Our goal is to create a system where progress happens naturally, without the need for constant pushing. It’s important that processes move forward efficiently and freely.”
Acknowledging the ambitious nature of this reform, Ngafuan likened it to an assembly line where issues are addressed transparently, but progress should be continuous. “If problems arise, they should be identified and reviewed openly. However, the system should function smoothly without being stalled,” he added.
Ngafuan also shared a broader vision for national development, highlighting the government’s commitment to meeting the hopes and dreams of Liberians. “It is our collective destiny for Liberia to advance and for its people to aspire for a better future. I am thankful to President Joseph Nyumah Boakai for the trust placed in me. The responsibility to fulfill these promises also lies with President Boakai and Vice President Hon. Jeremiah Kpan Koung. As part of this administration, we are dedicated to living up to these expectations.”
Focusing on the aspirations of ordinary Liberians, Ngafuan stressed that these hopes are central to the Ministry’s mission. “Whether in Toe Town or elsewhere, every citizen has dreams for the future. It’s our duty in the Ministry of Finance and Development Planning to help make those dreams a reality,” he said.
The Minister also spoke about fostering a performance-driven culture within the Ministry. He called for a work environment where performance is prioritized, and political transitions do not disrupt operations. “I am working with the Deputy Minister for Administration and other colleagues to build a performance-focused culture. While I should be reviewing files and identifying key individuals, this process is still underway,” he mentioned.
Hon. Ngafuan highlighted the importance of integrity in addition to competence and qualifications when hiring for government roles. “In the Ministry of Finance, we will prioritize qualifications, competence, and most importantly, integrity. Having someone who is qualified but lacks integrity poses a risk we cannot afford,” he stressed.
The Minister of Finance & Development Planning Ngafuan discussed the need for effective collaboration with international partners and stakeholders, urging prompt action. “We need to act with urgency to achieve results. While developing concepts and tasks is important, it should not distract us from addressing the immediate needs of those being hurt,” he emphasized.
According to the Economic Outlook released by the World Bank last week, Liberia’s economy has shown modest recovery in recent years. After rebounding post-pandemic, growth has averaged around 5.0 percent annually. In 2023, the economy grew by 4.7 percent, mainly due to a significant increase of 16.4 percent in gold production within the mining sector. This sector, along with construction and services, was a major contributor to economic growth. However, the agriculture sector struggled due to declines in key exports such as rubber, palm oil, and cocoa, which were worsened by global price drops.
The World Bank Economic Outlook indicates that despite this growth, Liberia faces several structural challenges. The fiscal deficit widened to 6.1 percent of GDP in 2023 due to reduced domestic revenue and overspending. Inflation increased to 10.1 percent, driven by currency depreciation and high food and fuel prices. The current account deficit remained elevated because of weak export growth and higher imports of food, fuel, and machinery.
The Report further suggests a positive medium-term growth outlook for Liberia, with projections indicating a 5.3 percent expansion in 2024, largely supported by the mining sector and ongoing infrastructure improvements. However, structural issues such as weak fiscal management, underdeveloped infrastructure, and low investment in critical areas like agriculture and education pose risks to sustained growth.
Additionally, it revealed that poverty remains high but has slightly decreased since its peak in 2020, with the national poverty rate falling to 59.7 percent in 2023. Rising food prices continue to be a major driver of poverty and food insecurity in Liberia.
To improve Liberia’s economic resilience, the World Bank recommends reforms in governance, better fiscal management, and increased investment in essential sectors like energy and infrastructure.
Hon. Augustine Kpehe Ngafuan, Liberia’s new Minister of Finance and Development Planning, has a proven track record of performing well during challenging times. Under his leadership in 2010, Liberia’s debt was forgiven through the Heavily Indebted Poor Countries (HIPC) Initiative. Additionally, he played a key role in adopting the Integrated Financial Management Information System (IFMIS) and was instrumental in the passage of the Public Financial Management Law in 2009. Minister Ngafuan is known for his reformist approach, introducing new systems and ensuring their effective implementation. Given his previous successes, we are confident that he will excel in his role once again. His experience demonstrates his ability to achieve positive results efficiently.
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