African Development Fund Approves $18.3M Boost for Liberia’s Revenue Collection and Governance Reforms

The African Development Fund (ADF), the concessional financing arm of the African Development Bank Group, has approved an $18.3 million funding package to strengthen Liberia’s revenue collection system and drive governance reforms.

The package includes a $9.6 million ADF-16 loan, a $6.8 million loan from the Transition Support Facility (TSF) Pillar I, and a $1.9 million in-kind contribution from the Liberian government. This support reflects the African Development Bank’s ongoing commitment to advancing fiscal stability, transparent governance, and sustainable economic growth in Liberia.

The initiative will focus on key interventions, including the digital transformation of Liberia’s tax collection system, modernization of judicial processes for handling financial crimes, and enhancement of anti-corruption frameworks. Additionally, the project aims to update mining sector policies to reduce tax leakages, a critical move toward increasing national revenue.

The project will also strengthen the capacity of law enforcement agencies to combat illicit financial flows and ensure better compliance with tax obligations. These efforts are aligned with Liberia’s Pro-Poor Agenda for Prosperity and Development, a national strategy focused on reducing poverty and promoting inclusive growth.

By addressing systemic issues in revenue collection and governance, the project aims to improve public service delivery, create employment opportunities, and restore public trust in government institutions. This initiative represents a direct investment in Liberia’s institutional capacity, supporting the country’s long-term development goals.

The African Development Fund’s support is seen as a critical step toward unlocking Liberia’s economic potential, fostering transparency, and ensuring a stronger, more resilient financial system.