Market Update: ‘Bread and Butter’ Economy Tied to Infrastructure | Business – Full Analysis

Finance and Development Planning Minister Augustine Kpehe Ngafuan has firmly linked the government’s aggressive push on infrastructure development to what he described as Liberia’s “bread and butter economy,” arguing that roads and energy are the most direct ways to improve livelihoods, reduce living costs, and create jobs for ordinary Liberians.

Ngafuan made the assertion on Wednesday during a wide-ranging media engagement aimed at unpacking President Joseph Nyuma Boakai’s State of the Nation Address (SONA), providing clarity on the government’s economic performance, policy direction, and development priorities.

“I’m happy that members of the press can join us today. This engagement is an opportunity to discuss topical issues, to unpack key elements of the President’s global message, and to reaffirm, with openness and confidence, the direction in which our country is moving,” Ngafuan said.

He explained that President Boakai’s address was not merely a constitutional requirement but a resource-based report card grounded in measurable outcomes and real-world impact. 

According to Ngafuan, the government’s focus is on progress that can be felt in markets, homes, and communities, not abstract promises.

“Liberia’s economy is stronger today than it was two years ago, and evidence supporting this is real, clear, and incontrovertible,” he stated.

Ngafuan disclosed that Liberia recorded 5.1 percent economic growth in 2025, outperforming projections and the previous year’s performance. Inflation declined to 4 percent, the lowest level in more than two decades, while international reserves increased by US$101 million. 

He also noted that, for the first time in many years, the Central Bank of Liberia posted two consecutive operational surpluses.

“These achievements are not abstract. They form the foundation of a more stable market, a stronger currency, and a more predictable business environment,” he said.

He further revealed that domestic revenue reached a record US$847.7 million, exceeding the government’s target by more than US$43 million, despite a sharp reduction in donor support.

“Many doubted our ability to withstand such shocks, and some even predicted collapse. Yet instead of faltering, we strengthened fiscal controls, tightened expenditure management, and ensured that essential services in health, education, and infrastructure were protected,” Ngafuan said.

Central to the Minister’s presentation was the argument that infrastructure is not political capital but economic survival for ordinary Liberians. He rejected claims that road construction and energy investments do not address people’s immediate needs.

“Road connectivity is critical to the bread and butter question,” Ngafuan said. “Improved roads mean farmers can bring produce to market faster, businesses reduce costs, and ordinary Liberians save time and money.”

He stressed that infrastructure projects are national assets, regardless of which administration initiated them.

“Should we stop progress because previous administrations began the work? Absolutely not. This is Liberia’s building, not any regime’s,” he said.

Ngafuan provided updates on key road corridors, including Red Light to Gbarnga, the Monrovia–Harper Highway, Fish Town to Harper, and Barclayville, describing them as economic lifelines that cut travel time, reduce vehicle costs, and stimulate trade.

Using public transportation as an example, Ngafuan pointed to the improved efficiency of National Transit Authority (NTA) buses operating on rehabilitated roads.

“When roads are good, buses can move faster, farmers can sell faster, and traders can reduce their costs. That translates directly into lower prices and higher incomes,” he explained.

Addressing delays in hospital construction, including the New Redemption Hospital, Ngafuan acknowledged setbacks but said the government inherited stalled projects and is committed to completing them.

“This project should have been delivered in four to five years. It should have been started and completed by previous administrations, but it wasn’t. It came to us, and it will soon be dedicated,” he said.

On energy, Ngafuan revealed that Liberia’s electricity access rate remains just under 40 percent, but the government aims to expand access to more than 75 percent by 2029 through investments in hybrid power plants and expanded generation.

He explained that affordable and reliable electricity is central to the bread-and-butter economy.

“When expenditure reduces, profits rise. When profits rise, businesses hire more people. And when they hire, workers can buy more bread and butter. That is the connection,” Ngafuan said.

Responding directly to critics who argue that roads do not put food on the table, Ngafuan said infrastructure remains the fastest and most effective way to improve living standards.

“Until we establish a Ministry of Bread and Butter, roads remain the most effective way to address the immediate needs of Liberians,” he said. “Improved roads, markets, and energy together improve livelihoods.”

On job creation, Ngafuan disclosed that more than 70,000 short- and medium-term jobs have been generated over the past two years through infrastructure investments and targeted government programs.

“People don’t always see the link between infrastructure, energy, and job creation. But when the main cost drivers for businesses—like power—are reduced, profits increase, and businesses hire,” he said.

Turning to fiscal responsibility, Ngafuan addressed concerns about Liberia’s public debt, which stands at approximately US$2.8 billion, comprising US$1.6 billion in external debt and US$1.2 billion domestically, roughly equal to the national budget. 

He noted that Liberia’s debt-to-GDP ratio of about 56 percent remains within internationally accepted sustainability thresholds.

“Critics will always doubt numbers and targets, but our job is to deliver results,” Ngafuan said. “Even with limited resources, disciplined governance and strategic investment can move Liberia forward.”

He also justified the submission of a supplementary budget, describing it as a tool to accelerate ongoing development projects and maintain momentum.

Ngafuan concluded by reaffirming the government’s commitment to transparency, public engagement, and inclusive development, urging Liberians to judge progress by impact rather than political narratives.

“Liberians should judge progress not by who started a project, but by who delivers and benefits from it,” he said. “Today is better than yesterday, and tomorrow will be better than today.”

“This is not about any minister or political party. This is about Liberia. And the people should ultimately be proud,” Ngafuan added.