The World Bank has approved $40 million in funding to support Liberia’s efforts toward inclusive growth and resilience. The initiative aims to enhance fiscal stability, create a strong foundation for private sector development, and strengthen the nation’s ability to address social, disaster, and climate challenges.
A key component of the package is a $20 million Catastrophe Deferred Drawdown Option (Cat DDO), the first of its kind in Liberia’s partnership with the World Bank. This mechanism provides immediate financial relief during declared natural disasters or health emergencies and reinforces ongoing risk management strategies.
This financing is the first in a planned series of three initiatives aligned with Liberia’s development strategy, which emphasizes agriculture, infrastructure, governance, and tourism. It also supports the World Bank’s Country Partnership Framework for Liberia.
Georgia Wallen, World Bank Country Manager for Liberia, highlighted the significance of the program: “This financing addresses underlying drivers of fragility, such as weak governance and social exclusion. It seeks to strengthen institutions, expand economic opportunities, and close infrastructure gaps for more equitable development.”
The initiative will focus on fiscal reforms, including increasing domestic revenue, improving transparency in public procurement, and optimizing cash management systems. It also aims to promote financial inclusion, establish a digital economy, and improve accountability in the power sector to encourage private sector growth.
Additionally, the operation supports social and climate resilience by advancing gender equity, enhancing disaster preparedness, and implementing sustainable land-use policies to foster inclusive development.
“These reforms are designed to achieve sustainable, private sector-led growth while addressing social vulnerabilities and preparing for climate and disaster risks,” noted Muhammad Waheed and Mary Elinor Boyer, the Co-Task Team Leaders.
This funding represents a critical step in Liberia’s journey toward building a more resilient and inclusive economy, addressing structural challenges, and safeguarding its citizens from future crises.