EU-Liberia Partnership

Signing ceremony of the national indicative program for EU development cooperation with Liberia for the period 2014-2020 by Amara Konneh (left), Liberian minister for finance and development planning, and Neven Mimica (right), European commissioner for international cooperation and development in the presence of Liberian President Ellen Johnson-Sirleaf. Photo by: European Union Liberia remains one of the most fragile states in West Africa even a decade after its civil war came to a close. While it has successfully established a working government, several issues need to be addressed to stabilize the situation there. The European Union notes that with additional reforms in public finance management, continued efforts in democratization and reconciliation, sustainable management of natural resources and good economic opportunities, conditions in the country could greatly improve over the next couple of decades. However, the extreme opposite is just as plausible should progress fail to be inclusive. Last year’s Ebola crisis was a major setback to the country’s development. World Bank data shows a drop in projected real gross domestic product growth rates for 2014 as a direct result of the outbreak — from an initial 5.8 percent to just 2.5 percent. The World Health Organization has declared an end to the Ebola outbreak in Liberia, but the country continues to suffer its lingering effects across a broad range of socio-economic areas. The challenge now lies in rebuilding the country’s economy and strengthening key public institutions and social service systems. The government’s second poverty reduction strategy, called the Agenda for Transformation, aims to create wealth and increase inclusiveness throughout the Liberian population. Its priorities include solidifying peace, security and the rule of law; bolstering infrastructure and economic growth; fostering human development; and strengthening governance and public institutions. The European Union has aligned its latest national indicative program for Liberia with the government’s poverty reduction strategy in its bid to support national efforts toward building a more stable and inclusive Liberia, while also tempering the effects of the Ebola outbreak. Funding levels The new NIP covers fiscal years 2014-2020 and has an indicative budget of 279 million euros ($311.4 million). The amount makes up EU’s A-allocation for Liberia and is financed through the 11th European Development Fund. This funding will be used for sectoral policies, programs and projects, as well as macroeconomic support. Previous funding under the 10th EDF only reached 161.8 million euros and covered fiscal years 2008-2013. A B-allocation will also be made available as a contingency fund for any unforeseen expenditures. This could be used for humanitarian aid, emergency and post-emergency response, and debt relief contributions. The amount for the B-allocation will be determined as the need arises. Both A and B envelopes are subject to midterm and end-of-term reviews and may be adjusted if deemed necessary. Funding priorities The overall objective of this NIP is to help Liberia transition out of its post-conflict state by addressing key challenges in governance and poverty reduction. To this end, EU support will focus on four main sectors — namely governance, energy, education and agriculture — while also financing civil society assistance and support measures for the implementation of this NIP. Detailed below are EU sectoral objectives and interventions. Good governance: The EU will seek to increase the institutional capacity, level of professionalism and accountability of security institutions and support public finance management and anti-corruption reforms for revenue-generating institutions. Activities will also seek to improve domestic revenue mobilization — including from natural resources — administration and oversight of public finance management at both the national and county levels. The EU will also strengthen rule of law and access to justice while supporting the ongoing democratization process with a focus on legislature and electoral institutions. Energy: EU targets in the energy sector include increasing access to sustainable and affordable electricity and improving energy policies in cooperation with the government, private sector, civic organizations and other aid partners. This includes strengthening the technical and managerial capacity of the Liberian department of energy and improving the investment framework for the energy sector. Education: Support for the education sector will be geared toward scaling up basic education as well as technical and vocational education and training while easing access to these services. The EU intends to strengthen school management and increase equitable access for targeted members of the population, particularly girls, the disabled and those living in rural communities. Agriculture: The EU aims to increase agricultural productivity by increasing access to agricultural extension services and supplying the necessary inputs, tools and technologies, especially for women. Access to both local and international markets will also be improved in order to increase domestic sales and agricultural exports. To support efforts in reducing the incidence of malnutrition in Liberia, the EU will support the development of nutrition-sensitive production systems by improving perennial state mechanisms for monitoring malnutrition. Below is a breakdown of EU sectoral funding for the 2014–2020 partnership period. While the health sector is not an area of focus for this funding period, the NIP will also contribute to post-crisis recovery efforts in light of the recent Ebola outbreak. Response efforts under the 10th EDF are still ongoing, and it is expected that additional activities will be supported under the 11th EDF’s regional and thematic interventions. The B-envelope is also foreseen as a likely source of funding for health-related interventions during this partnership period. Devex analysis EU assistance to Liberia is part of the 28-member bloc’s broader partnership with African, Caribbean and Pacific countries. Last December, the EU funneled an additional 61 million euros in support of Ebola relief efforts in West Africa, breaking the 1 billion euro mark in aid contributions for short and long-term response efforts in the region. Although the Ebola crisis has officially ended for the West African country, much remains to be done. The EU is well-aware of the several risks surrounding aid delivery. As a fragile state, and one that is listed in the United Nations’ least-developed countries, Liberia is plagued by high fiduciary risks that stem from weak institutional capacities, poor management of natural and economic resources and a lack of political will to implement key reforms. However, the EU remains committed to providing much-needed assistance as Liberia faces a pivotal period — the drawdown of the U.N. mission in Liberia is expected to be completed in 2016, while presidential elections are set to take place in 2017. Further, the EU realizes that the country is still highly dependent on foreign aid, which made up 37 percent of its gross national income in 2012. To mitigate risks, the EU will carry out policy dialogues, support reforms in public finance management and the government’s monitoring capacities, and strengthen oversight bodies and civil society organizations, particularly for their involvement in budgetary processes and sectoral interventions. As recovery efforts continue in Liberia, new challenges face aid organizations. But while the situation in Liberia is far from ideal, the EU stands ready to provide assistance with its latest partnership program through the next decade. Contact Delegation of the European Union to Liberia Tel: (231) 777-5824, (231) 7775-7826 Fax: (231) 7700-1062 Email: