The World Bank has approved a $40 million fund to support Liberia’s efforts toward inclusive growth and resilience.
The World Bank has approved a $40 million fund to support Liberia’s efforts toward inclusive growth and resilience. The initiative aims to increase fiscal stability, establish a strong foundation for private sector development, and enhance the country’s ability to address social, disaster, and climate challenges.
A key component of the package is Liberia’s first-ever $20 million Catastrophe Deferred Drawdown Option (Cat DDO) in partnership with the World Bank. This mechanism provides immediate financial relief during declared natural disasters or health emergencies and strengthens ongoing risk management strategies.
This funding is the first in a series of three planned initiatives aligned with Liberia’s development strategy, focusing on agriculture, infrastructure, governance, and tourism. It also supports the World Bank’s Country Partnership Framework for Liberia.
Georgia Wallen, World Bank Country Director for Liberia, emphasized the importance of the program: “This funding addresses the underlying factors of vulnerability such as poor governance and social exclusion. It aims to strengthen institutions, expand economic opportunities, and close infrastructure gaps for more equitable development.”
The initiative will focus on financial reforms such as increasing domestic revenue, improving transparency in public procurement, and optimizing cash management systems. It also aims to promote financial inclusion, build a digital economy, and enhance accountability in the energy sector to foster private sector growth.
Additionally, the operation supports social and climate resilience by implementing sustainable land-use policies to advance gender equality, increase disaster preparedness, and promote inclusive development.
Muhammad Waheed and Mary Elinor Boyer, Joint Task Team Leaders, stated, “These reforms are designed to ensure sustainable, private sector-led growth while addressing social vulnerabilities and preparing for climate and disaster risks.”
This funding represents a critical step in Liberia’s journey toward building a more resilient and inclusive economy, addressing structural challenges, and protecting citizens from future crises.
