Liberia’s debt repayment obligations have climbed to more than US$230 million, prompting the government to strengthen borrowing controls and prioritize debt servicing as part of efforts to restore fiscal stability and prevent the recurrence of stalled development projects.
The disclosure was made by Assistant Minister for Budget Sarah McGill Mulbah of the Ministry of Finance and Development Planning during the 37th Management Committee and 16th General Assembly meetings of the Collaborative Africa Budget Reform Initiative (CABRI) held in South Africa in June 2026.
Addressing participants at the regional gathering, Mulbah said the current administration inherited significant debt-related challenges when it assumed office, including numerous development projects that had been abandoned due to inadequate financing of debt repayment obligations.
According to her, many projects funded through external loans and grants suffered setbacks because repayments were either neglected or deprioritized by previous administrations.
“We met projects that had been abandoned because debt repayments were not being financed or prioritized,” she said, stressing that the situation underscored the need for stronger fiscal discipline and improved debt management practices.
Mulbah acknowledged that debt servicing often generates public debate, particularly when citizens compare allocations for debt payments with spending on critical sectors such as education, healthcare, and social services.
She noted that Liberia relies heavily on loans and development assistance to finance major infrastructure and capital projects because domestic revenues alone remain insufficient to support the country’s development ambitions.
However, she warned that failure to honor repayment commitments can disrupt partnerships with development financiers and halt projects intended to improve the lives of Liberians.
Describing public debt as one of the country’s persistent fiscal challenges, Mulbah said many citizens do not fully understand the role borrowing plays in national development and resource mobilization.
“When people see debt service allocations in the budget, they sometimes believe government spending is not aligned with national priorities,” she explained. “What is often not understood is that debt remains a crucial component of our resource mobilization efforts.”
She further pointed out that Liberia’s Public Financial Management (PFM) Law requires debt obligations to receive first claim on government resources, meaning debt repayments must be honored before many other spending commitments can be executed.
In response to mounting repayment obligations, the government has established a debt management committee to oversee borrowing decisions and strengthen fiscal oversight.
Mulbah said the new framework requires that every proposed loan be supported by a comprehensive debt sustainability strategy before approval is granted.
The measure is intended to ensure that future borrowing remains affordable and does not place excessive pressure on national finances or undermine development priorities.
The policy reflects the government’s broader effort to strike a balance between securing financing for critical infrastructure projects and avoiding the accumulation of unsustainable debt.
Officials believe the reforms will help prevent a repeat of the cycle in which unpaid obligations contribute to project delays, financing constraints, and fiscal instability.
Beyond debt management, Mulbah highlighted the government’s Agenda for Inclusive Development, the country’s five-year national development blueprint designed to guide economic growth and social transformation.
She explained that following the inauguration of the current administration in 2024, nationwide consultations were conducted across Liberia’s 15 counties to identify local development challenges and priorities.
The findings informed the formulation of the plan, which is built around six strategic pillars aimed at accelerating economic growth, reducing poverty, strengthening governance, and improving living standards.
“At the end of the day, the whole essence is to provide job opportunities for Liberians so that they can earn income, support their families, and improve their quality of life,” Mulbah said.
The development agenda also seeks to promote inclusive growth by ensuring that the benefits of economic progress reach communities across the country.
Mulbah credited Liberia’s membership in CABRI, which the country joined in 2013, with helping improve public financial management and budgeting processes.
She said participation in the organization has enabled Liberia to engage in peer-learning initiatives, benefit from technical exchanges with other African countries, and adopt international best practices in budgeting and fiscal management.
“Through that, we have also been able to improve our budgeting processes to deliver tangible results for the Liberian population,” she noted.
Reflecting on her personal journey, Mulbah also recounted facing skepticism after her appointment as Assistant Minister for Budget, with some critics questioning whether her age and gender could withstand the demands of such a high-profile position.
Nevertheless, she said she embraced the challenge and remained focused on delivering results, viewing her experience as an opportunity to break barriers and inspire greater participation of women in public sector leadership.
