MONROVIA, February 10 (LINA) – The World Bank has approved a financing package to improve the investment climate, expand sustainable access to finance, and increase the efficiency of trade in Liberia.
The Liberia Investment, Finance, and Trade (LIFT) project, according to a Word Bank release, will improve the investment climate; expand sustainable access to finance, and increase the efficiency of trade in Liberia.
The LIFT project is financed by the International Development Association (IDA) in the amount of $40 million ($20 million grant and $20 million credit), is the first World Bank financing project in a generation to support Liberia’s private and financial sectors and the first such for the Ministry of Commerce and Industry and the Central Bank of Liberia.
In doing so, it noted that the project is supporting Liberia’s Pro-poor Agenda for Prosperity and Development; in particular, pillar two that focuses on the Economy and Jobs which has been developed under the Government’s leadership and in close collaboration with the International Finance Corporation (IFC) and other Donors that are also supporting Liberia’s private and financial sectors.
World Bank Country Manager in Liberia Khwima Nthara said, “The financing package will be critical to supporting the Government’s jobs agenda, as it is through the private sector that Liberia can create more and sustainable jobs”.
It added: that “In particular, building on recent improvements in macroeconomic indicators, the project will support far-reaching structural reforms that will improve the business environment and hence, send a clear message that Liberia is truly open for business.”
The Statement maintained that the new project will improve Liberia’s investment climate by strengthening institutions providing government to business services covering investment support, business licensing and an international trade single window; and improves capabilities and competitiveness of Small and Medium Enterprises through targeted technical assistance linking them to markets and access to finance, through technical assistance and a Line of Credit.
Additionally, it stated that the Liberia Investment, Finance and Trade Project seeks to support access to digital financial services, through a new National Electronic Payment Switch, and a Credit Reference System.
At the same time, Task Team Leaders Thomas Vis and Kiyotaka Tanaka said the need for increased private sector investment and for SMEs to have access to markets and finance is very critical.
The LIFT project, according to them, will seek to capitalize on emerging national, regional and international trade opportunities and the existence and potential of Foreign Direct Investment in Liberia, to offer a combination of technical assistance and finance to support SMEs to access markets, improve capabilities, and increase productivity.”
