NATIONAL NEWS
MONROVIA – Liberia has recorded significant improvements in economic growth, fiscal performance and macroeconomic stability, with the country meeting three of the four primary convergence criteria of the West African Monetary Zone (WAMZ) in 2025.
By: Trokon S. Wrepue – trokon1992seokin@gmail.com
Finance and Development Planning Minister Augustine Kpehe Ngafuan made the disclosure on September 7, 2026, while delivering opening remarks at the 56th Meeting of the Convergence Council of the West African Monetary Zone, which was held virtually.
Minister Ngafuan, who chaired the meeting, said Liberia’s progress reflects the government’s continued commitment to fiscal and monetary reforms as the country works toward achieving full compliance with WAMZ convergence requirements.
He said Liberia met the primary criteria relating to the fiscal deficit, central bank financing of the budget deficit and external reserves, following an upward revision of the country’s reserve position to 3.2 months of import cover after a recent IMF mission.
However, he said average inflation remains the only primary convergence criterion that Liberia has yet to satisfy, although the government expects to close that gap by the end of 2026.
On the secondary convergence criteria, Minister Ngafuan said Liberia has met both benchmarks for two consecutive years.
He noted that public debt stood at 54.9 percent of Gross Domestic Product in 2025, significantly below the WAMZ ceiling of 70 percent, while exchange-rate variation against the West African Unit of Account remained within the prescribed plus-or-minus 10 percent band.
Stronger Economic Growth
Minister Ngafuan said Liberia’s real GDP growth strengthened to an estimated 5.1 percent in 2025, compared with 4.0 percent in 2024, with growth projected to accelerate to approximately 5.5 percent in 2026.
He attributed the projected expansion largely to developments in the primary sector, particularly mining and panning, with iron ore production expected to more than double in 2026.
The secondary sector is also projected to recover strongly, moving from a contraction of 2.8 percent to growth of 5.9 percent, driven by increased cement and beverage production.
The tertiary sector, according to the Minister, is expected to strengthen to 3.7 percent, supported by expansion in electricity supply and increased construction activities.
Inflation Declines
Minister Ngafuan also highlighted what he described as significant progress in controlling inflation.
He said disciplined coordination between monetary and fiscal authorities helped reduce end-period inflation to 4.0 percent in December 2025, down sharply from 10.7 percent a year earlier.
Although increased imported fuel costs pushed headline inflation to 5.0 percent by June 2026, the Minister said average inflation during the first half of 2026 fell to 4.5 percent, compared with 12.2 percent during the same period in 2025.
He said the government remains committed to further reducing inflation as part of efforts to achieve full WAMZ convergence.
Revenue Collection and Debt Reduction
The Finance Minister reported that Liberia’s total revenue and grants increased by 18.6 percent to US$887.6 million in 2025, compared with US$748.2 million in 2024.
The increase, he said, was driven by a 23.7 percent rise in tax revenue and what he described as the highest domestic revenue collection in Liberia’s history.
According to Minister Ngafuan, stronger compliance and digitalization contributed to the improved fiscal performance.
The government’s fiscal consolidation also helped reduce Liberia’s overall public debt-to-GDP ratio from 56.4 percent in 2024 to 54.9 percent in 2025, despite a 10.2 percent increase in total expenditure.
He noted that the Liberian Legislature subsequently approved the country’s largest-ever national budget of US$1.3 billion for Fiscal Year 2026.
The budget, he said, is intended to support the implementation of the government’s ARREST Agenda for Inclusive Development, which focuses on Agriculture, Roads, the Rule of Law, Education, Sanitation and Tourism.
Roads and Energy Investments
Minister Ngafuan said the government has also accelerated construction and rehabilitation works on major road corridors across the country.
Among the projects highlighted were the Monrovia-Freetown highway, the Southeastern corridor and the Bong-to-Lofa road.
He said the investments are expected to reduce transportation and logistics costs, facilitate domestic and cross-border trade, and strengthen Liberia’s connection with neighboring countries, including Sierra Leone, Côte d’Ivoire and Guinea.
On energy, the Minister said the government is advancing efforts to expand hydropower generation, extend the national electricity grid and increase access to electricity in Grand Bassa County and southeastern Liberia.
He said these investments are intended to provide a stronger foundation for both industrial and household electricity demand.
Tax and Financial Sector Reforms
Minister Ngafuan further disclosed that Liberia is advancing reforms aimed at harmonizing indirect taxation with ECOWAS commitments.
He recalled that the Goods and Services Tax was increased from 10 percent to 12 percent in 2024 as part of the transition toward a full Value Added Tax regime.
Taxpayer registration for the VAT system began in mid-2026 ahead of the planned January 2027 rollout.
He said the government has continued financing the transition with domestic resources despite delays resulting from the 2025 suspension of USAID-supported technical assistance.
The Minister also pointed to developments in financial inclusion and digitalization, including the Liberia Integrated Tax Administration System, the Inclusive Instant Payment System and the full operationalization of the Pan-African Payment and Settlement System, or PAPSS.
He also highlighted the enactment of the Banking and Financial Institutions Act of 2025 and a new Crisis Management Framework designed to strengthen financial stability.
WAMZ Economies Show Resilience
Addressing the broader regional outlook, Minister Ngafuan said economies within the West African Monetary Zone have demonstrated resilience despite continuing global economic uncertainty.
He said regional economic growth increased from 4.2 percent in 2024 to 4.7 percent in 2025 and is projected to reach 5.3 percent in 2026.
According to the Minister, compliance with the WAMZ primary convergence criteria improved from 41.7 percent in 2024 to 45.8 percent in 2025, while compliance with secondary criteria increased to 91.7 percent.
The overall convergence score consequently rose to 61.1 percent in 2025, compared with 52.8 percent the previous year.
However, he acknowledged that no WAMZ member state satisfied all four primary convergence criteria.
Minister Ngafuan said the improvements demonstrate progress toward macroeconomic stability, policy harmonization and the broader objective of establishing a single currency for the region.
The WAMZ is working toward the launch of the proposed single currency, the Eco, by 2027.
Global Risks Remain
The Finance Minister cautioned that the global economy continues to face significant uncertainties and vulnerabilities.
He referenced the IMF’s April 2026 World Economic Outlook, which projected global economic growth to moderate from 3.5 percent in 2025 to 3.0 percent in 2026.
He said ongoing conflicts in the Middle East and rising geopolitical tensions could create additional pressure through higher energy and transportation costs, tighter financial conditions and weaker external demand.
For Liberia, Minister Ngafuan identified persistent domestic structural bottlenecks, the effects of the 2025 suspension of USAID-supported programs, and continuing global trade and geopolitical tensions as key downside risks.
He said these factors could contribute to higher international food and fuel prices.
Liberia Committed to Full Convergence
Despite the challenges, Minister Ngafuan said Liberia’s medium-term economic outlook remains broadly favorable.
He projected real GDP growth to remain between approximately 5.1 and 5.5 percent through 2026, supported by continued expansion in mining, energy, transportation, trade, tourism and financial services.
Average inflation is projected to decline from 8.5 percent in 2025 to about 6.3 percent in 2026 and 5.3 percent in 2027.
Gross external reserves are also projected to strengthen to 3.1 months of import cover in 2026 and 3.2 months in 2027, while public debt is expected to remain within the regional ceiling.
Minister Ngafuan reaffirmed Liberia’s commitment to the WAMZ Work Programs and the ECOWAS Single Currency Programs.
He called on member states to sustain monetary, fiscal and structural reforms as the region works toward the 2027 target for launching the Eco.
“As we advance toward the 2027 target for the launch of the Eco, our collective progress will continue to be tested by external headwinds, geopolitical tensions, commodity price volatility, and structural constraints across our economies,” Ngafuan said.
He stressed that regional governments must remain committed to reforms that can establish a stable and prosperous monetary union for West African citizens.
The 56th Meeting of the WAMZ Convergence Council brought together Finance Ministers, Central Bank Governors, regional institutions, development partners and other stakeholders to review progress toward monetary integration and assess the region’s macroeconomic convergence performance.
The meeting followed deliberations by the 59th Meeting of the WAMZ Technical Committee held from August 27 to 29, 2026, and the 53rd Meeting of the Committee of Governors held from September 3 to 4, 2026.
Those meetings reviewed WAMZ macroeconomic developments and convergence performance for the period ending December 2025, policy research on currency-crisis vulnerability and inflation targeting, progress on regional debt and capital market integration, PAPSS, and reports from financial and insurance supervisory bodies.
Minister Ngafuan closed by expressing Liberia’s appreciation to WAMI, WAMA, WAIFEM, development partners and regional institutions for their continued support to West African monetary integration.
He also commended the Technical Committee and Committee of Governors for their work and expressed confidence that the 56th Convergence Council meeting would produce constructive and forward-looking outcomes.
