Ministers of Finance from Sierra Leone and Liberia have agreed to foster ties on public financial management in the post conflict Mano River basin.
The two countries will strengthen collaboration in crucial areas such as debt management, budgeting, and tax policy.
During a meeting in Freetown on November 25, 2024, Liberia’s Finance and Development Planning Minister Augustine Kpehe Ngafuan and Sierra Leone counterpart Sheku Ahmed Fantamadi Bangura disclosed plans to resuscitate the Liberia-Sierra Leone Joint Partnership in Public Financial Management (PFM).
This framework previously fostered peer learning and reciprocal visits between officials from both nations from 2009 to 2012.
The partnership aims to enable both nations, which are still recovering from the aftermath of civil conflicts and health pandemic, to share invaluable experiences in managing their public finances—an essential step toward sustainable development and economic stability.
Both countries face considerable challenges related to their public debt stock. As of 2023, Sierra Leone’s public debt stood at approximately $3.5 billion, which translates to about 60% of its Gross Domestic Product (GDP). Also, in 2023, Liberia total public debt reached US$2.5 million (58.8 percent of GDP), up from US$1,869 million (53.3 percent of GDP) in 2021.
These statistics illustrates the pressing need for effective debt management strategies and policies to enhance fiscal stability in both nations.
“Our strong professional ties will lead to synergized efforts between our ministries aimed at improving the development outcomes of our people,” Sierra Leone Finance Minster Bangura said in the capital Freetown.
His Liberian ally Ngafuan echoed these sentiments, emphasizing the pressing developmental expectations of their citizenry.
“To meet our people’s expectations, we must lean on each other’s shoulders.”
The two ministers further explored shared experiences regarding their respective Extended Credit Facility (ECF) programs with the International Monetary Fund (IMF) during their discussions. They highlighted the importance of improving domestic revenue generation and scaling up external support for development from both multilateral and bilateral partners, which is vital for maintaining fiscal discipline and funding essential public services.
In addition to discussing broad strategies in public finance, Ngafuan and Bangura agreed on crucial follow-up actions stemming from the recent visit of President Joseph Nyuma Boakai to Sierra Leone, showcasing the intertwining of political will with financial stewardship.
