Support for PFM Reforms


  • Reference: P-LR-KF0-001
  • Approval date: 13/12/1901
  • Start date: 01/01/2002
  • Appraisal Date: 21/02/2011
  • Status: ApprovedAPVD
  • Location: Liberia


The Pillar III grant will support the funding gap for PFM that has been identified in the Ministry of Finance in the following three departments.

A.Macro Fiscal Unit (MFU) The MFU was established at the end of 2003 to provide high quality advice to the Ministry of Finance as well as development partners and other functionaries of government. The unit will be responsible to prepare a post HIPC investment policy, a post HIPC debt sustainability policy, advising on growth potential and growth corridors, a medium term fiscal framework (MTFF) and medium term expenditure framework (MTEF) to underpin the budget process. In order to support the above, the MFU needs to be well structured, functional and well staffed. Hence the request for funding assistance from the AfDB to support the recruitment of four (4) senior economists and one (1) principal economist with long term experience to elevate the work of the Unit to include research and development that is essential for economic recovery and sustainability.

B. PFM Reform Coordination Unit The PFM reform coordination unit is the nerve centre of the PFM reform program that will coordinate and monitor PFM reforms and acts as Secretariat to the PFM reforms steering committee. It will oversee the implementation of the PFM reforms in a sequential manner across government, thereby yielding the desired results of having an effective PFM reform agenda. The budget proposal submitted to fund the unit will kick-start its activities for one year to support technical assistance to recruit the coordinator, financial management specialist, economist and office assistant.

C. Aid Management Unit (AMU) Improving the effectiveness of Aid and the Government of Liberia's leadership in the development process is a top priority. It is in this vision that the GOL with the support of development partners established the Aid Management Unit. The Government seeks to standardize a pattern for the flow of Aid through the medium term expenditure framework and also to enhance monitoring and reporting on donor resources and effective review of donor financing Currently the AMU has four staff and there is a dire need to increase the staff by additional six staff.



To support the Ministry of Finance in designing and implementing PFM reform strategy and medium term action plan


Liberia just completed several programs with the international financial institutions ans successfully reached HIPC completion point. The key challenge for the government is to prepare a post HIPC sustainability agenda and to redirect the country on a steady long term growth path

Over the last three years the government of Liberia has made important progress in key areas of Public Financial Management. A new PFM act was passed and its enabling regulations adopted; budget preparation processes have been improved and IFMIS project is being implemented. Implementing the new legal framework will involve a major transformation of the entire public financial management system


Building on the success of the support provided to the Government of Liberia through the Fragile States Facility Pillar I budget support grant for Poverty Reduction and Public Financial Management Reform as well as the first phase of Pillar III grant to support technical assistance and capacity building at the Ministry of Finance, the current capacity building grant will help strengthen the Ministry of Finance to rebuild core state functions by strengthening human and institutional capacity to prioritize Liberia's post HIPC reconstruction needs and improve economic governance and jump start economic growth.

Key contacts

MKANDAWIRE Timothy Blackwell Kausipa - RDGW4


Finance source Amount
Co-financierUAC 636,064
TotalUAC 636,064
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