Liberians woke up to troubling news this week as Finance Minister Augustine Ngafuan revealed that the United States Agency for International Development (USAID) has frozen or outright canceled several critical development projects in the country. The total value of these affected programs stands at a staggering $51 million, touching some of Liberia’s most essential sectors, health, education, elections, and domestic revenue collection.
The revelation came during Minister Ngafuan’s testimony before the Liberian Senate Ad Hoc Committee, which is investigating the issue. According to him, the number of affected projects is still growing, with three more cancellations confirmed just during his testimony. He warned that the situation remains fluid, and more projects could be at risk.
Which Projects Are Affected?
Some of the most significant losses include:
- Education System Strengthening Project ($23.4 million): This initiative was designed to improve Liberia’s struggling education sector, but with its cancellation, students and schools across the country could face serious setbacks.
- Local Empowerment for Accountability and Decentralization (LEAD) ($17.9 million): This project was crucial in helping Liberia transition from a Goods and Services Tax (GST) to a Value Added Tax (VAT) system, ensuring better revenue collection. The Liberia Revenue Authority (LRA) was a key beneficiary, and now, the freeze raises concerns about Liberia’s ability to meet its $1 billion domestic revenue target.
- Elections and Democracy Program ($15.9 million): With Liberia’s democratic processes already under scrutiny, cutting funding to this program could have serious consequences for upcoming elections and overall governance.
- Architecture, Engineering, and Construction Oversight Services for Water and Health Infrastructure ($2.9 million): This project was meant to oversee key health and water infrastructure improvements. Its cancellation could mean delays in much-needed developments in these areas.
- Community-Led Monitoring Project ($185,000): A project implemented through an NGO to ensure better community oversight of health and other services.
- DELTA Project ($19 million): This was aimed at improving monitoring and evaluation within the Ministry of Finance but is now off the table.
Even More Cuts, Impact on Food Security and Health
If the above list wasn’t already concerning enough, Minister Ngafuan also disclosed new cancellations that could hit Liberia’s most vulnerable communities the hardest:
- $11 million media activity fund that supported immunization and COVID-19 awareness efforts.
- $20 million school feeding program, which provided meals to students across the country through NGOs like Mary’s Meals and Mercy Corps.
- $20 million food security program under the Ministry of Agriculture, intended to boost food production and reduce hunger.
What Does This Mean for Liberia?
The ripple effects of these cancellations are far-reaching. Beyond the obvious impact on services and programs, thousands of jobs are now at risk, as both local and international NGOs that depended on these funds face potential layoffs. Professionals working on these projects, whether in education, health, governance, or tax administration, now face an uncertain future.
For everyday Liberians, the cancellation of projects like the school feeding program could mean more children going to school hungry. The halt on election support funding raises concerns about the credibility and fairness of future democratic processes. And with the loss of key tax reform projects, the government may struggle to generate the revenue needed to sustain essential public services.
Government’s Next Steps
Minister Ngafuan did not sugarcoat the gravity of the situation. In a candid moment, he remarked, “People are spending longer hours in prayer rooms because no one knows which project could be canceled next.”
The Senate Ad Hoc Committee is expected to continue its investigation, while the Liberian government engages with U.S. officials to seek clarity on why these funds have been frozen and whether any can be reinstated. The coming weeks will be crucial as Liberia navigates this crisis, hoping to salvage what it can from the partnerships that have long supported the country’s development.
For now, uncertainty looms, and Liberians are left wondering, what’s next?
