The International Monetary Fund (IMF) reiterates its commitment to supporting Liberia’s economic development with an initial US$5.8 million disbursement.
By Stephen G. Fellajuah (contributor)
Monrovia, Liberia, November 4, 2024 – The International Monetary Fund (IMF) Resident Representative in Liberia, Joel Okwuokei, emphasizes the Bretton Wood organization’s commitment to supporting Liberia’s economic development, noting that the IMF is a longstanding partner of Liberia, having been a member since 1962.
He spoke about the organization’s vital role in Liberia’s economic framework, with its efforts focused on promoting macroeconomic stability, which is essential for fostering a conducive environment for investment.
“Let me emphasize that the IMF is very committed to supporting Liberia,” Mr. Okwuokei notes.
He adds that the IMF engages with Liberia in key areas: providing policy advice, program engagement, and sector reform.
The organization collaborates closely with Liberian authorities and other stakeholders to discuss pertinent economic issues. This helps the IMF formulate tailored recommendations that are essential for the country’s development, addressing specific challenges and promoting effective policies.
Okwuokei highlights that a key aspect of the IMF’s support involves capacity building, both at the institutional and human capital levels, to empower Liberia to design and successfully implement its own economic policies.
He says the IMF engagement is concessional financial support, which led to the approval of a US$210 million Extended Credit Facility (ECF) arrangement for Liberia in September 2024.
This funding is intended to support the implementation of the Liberian government’s ARREST Agenda, a strategic framework aimed at addressing key economic challenges and promoting growth through 2027.
The 40-month financing package is designed to not only provide immediate support but also to catalyze additional external financing from international financial institutions and development partners.
This strategic approach aims to leverage the IMF’s assistance to attract further investment, enhance Liberia’s economic stability, and facilitate the implementation of key reforms under the ARREST Agenda.
The purpose of the loan is to support Liberia’s Economic Reform Agenda (ARREST) to address macroeconomic imbalances, strengthen debt sustainability, and promote private sector-led growth.
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The IMF immediately disbursed about $5.8 million, with the remaining funds to be disbursed over the next 40 months.
The program includes implementing new fiscal measures, such as a Value Added Tax (VAT), increasing priority public spending, and enhancing financial stability.
“The program will help unlock additional financing from other international financial institutions and development partners,” Mr. Okwuokei explains and adds that the program aims to restore economic stability and sustainable growth while helping to reduce poverty.
He was speaking here on Thursday, October 31, 2024, when the Banking Institute of Liberia, Inc. (BIL), in collaboration with the Liberia Chamber of Commerce, organized a one-day roundtable held at the Monrovia City Hall.
He underscores the importance of strengthening investor confidence as a key factor in promoting sustainable growth. He reiterates the IMF’s dedication to working collaboratively with the government and other stakeholders to address challenges facing the country’s investment landscape.
The event that seeks to enhance investor confidence in Liberia, was held under the theme “Building Investors’ Confidence in Liberia: Enhancing Legal Protection to Strengthen the Business Environment and Attract Investment Capital”.
The program brought together key stakeholders, including government officials, business leaders, and legal and financial experts, to discuss effective strategies for improving the country’s investment climate. Through collaborative discussions, participants addressed critical issues and proposed actionable solutions to foster a more secure and attractive investment environment.
