When he took office in Liberia in January 2024, President Joseph Boakai inherited an alarming economic situation. Foreign exchange reserves were not only depleted having fallen to $2.4 million, barely enough to cover two months of imports but had also been overestimated by nearly 100 percent by the previous administration. The country, excluded from the International Monetary Fund (IMF) credit program and financially isolated, was accumulating arrears to its international creditors.
Faced with this situation, the head of state made fiscal discipline and the restoration of confidence among financial partners the cornerstones of his administration.
The results are now evident. The consolidation of public finances has brought inflation down to 4% by the end of 2025, its lowest level in two decades. Foreign exchange reserves rose from $475 million in 2024 to $576 million in 2025.
Most importantly, Liberia has restored its relationship with its creditors by clearing its arrears and regaining access to international financing. The IMF praised this “prudent macroeconomic management” and granted Liberia unprecedented direct budgetary support, with a disbursement of $12.5 million earmarked for health, education, and agriculture.
This fiscal discipline has paved the way for new opportunities. The World Bank has allocated $40 million in budget support, and the European Union has allocated $60 million for the 2025-2027 period.
The African Development Bank has also granted a loan of $16.7 million to support the government’s reform program. Liberia has also had its eligibility for the Millennium Challenge Corporation Compact renewed, a sign of renewed confidence from its international partners.
By subjecting all key institutions to unprecedented audits and imposing strict budgetary discipline, President Boakai has laid the foundation for a credible state on the international financial stage. This restored credibility, as Finance Minister Augustine Ngafuan emphasized, is essential for the return of investors and sustainable growth.
Boakai’s challenge now is to translate this macroeconomic stability into tangible improvements in the living conditions of Liberians.
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