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Unlocking
Private
Sector
investment
in Liberia
1. Liberia is Africa’s oldest republic
with a population of 4.29million.
2. Liberia remains among the poorest
countries in the world
3. Its GDP growth rate in 2015 was
0.7% compared to 8.7% in 2013.
4. Its electricity coverage is 2% with
a high electricity tariff of $0.49
5. Its infrastructure needs is
estimated to be US $ 323 million
for roads supported by World
Bank, GIZ, SIDA , European
commission and African
Development Bank
Obstacles to
Financial
Development
in Liberia
Poor state of
infrastructure
due to
underinvestment
.
Narrow and
underdeveloped
financial sector
with limited
financial
instruments
High cost of
electricity
Inadequate
access to safe
drinking water
and sanitation
facilities
Horizontal
inequity from
its private
sector with
poorly
developed
capacity of the
Indigenous
OBSTACLES TO INVESTMENT IN
LIBERIA
Private Sector Opportunities
 Expansion of firm
generation, reduce cost
of electricity
 Attract private sector
investment to generation
, transmission,
distribution of electricity
 Green bond for
hydropower, solar, wind,
waste to energy
potential, biomass
potential
 Lack of highly networked
public transport system
Private Sector Opportunities
 International cellular
phones do not always
work in Liberia.
 Investment in health
sector – expanding
access to basic
healthcare of
acceptable quality.
 Establishing an
effective, responsive
and sustainable
healthcare delivery
system and an
effective supply chain
IMPLEMENTING THE SDG’S
BUILDING CAPACITY OF INDIGENOUS
CITIZENS AND YOUTH
Human development
such as:
 Improvement of
knowledge and skills
with opportunities for
its efficient use
 This translates to
increased skilled
workforce, better
business conditions
and greater democracy
at all levels
HUMAN DEVELOPMENT
BALANCING ECONOMIC,
SOCIAL AND ENVIRONMENTAL
OBJECTIVES
 Implementation of
National policy on
decentralization and
national governance to
constituencies.
 Development of a
growth plan that
deliberately seeks to
deliver development to
those in the rural areas
 Improving domestic
public and private tax
revenue systems at the
constituencies
 Improving infrastructure
in terms of transport,
power and
communication
networks
 Improving investment
climate, encouraging
competition and use of
financial instruments to
encourage sustainable
development
SUSTAINABLE DEVELOPMENT
HOW DOES IDA HELP ADDRESS HUMAN
AND SUSTAINABLE DEVELOPMENT
Helping Liberia move
towards achieving
sustainable
development through
six key enablers:
 Local governance
 Infrastructure
 Human capital
 Biodiversity
 Green energy
Technology
 Trade
TOTAL ESTIMATED COST OF THE AGENDA FOR HOLISTIC
TRANSFORMATION OF CITIZEN, INSTITUTION AND INFRASTRUCTURE
2012-2017
HOW DOES IDA HELP ADDRESS HUMAN
AND SUSTAINABLE DEVELOPMENT
 Liberia as a fragile state is benefiting from Africa 50 with African
Development Bank supporting transformation and regional
integration.
 In 2016 the African Development Bank gave EUR 10,000,000
investment grant for Liberia energy access.
 Liberia was greatly affected by the Ebola epidemic that crippled the
health sector. This sector would benefit from private philanthropy
with institutions like GAVI supporting development of vaccine
against Ebola. Providing blended loans and grants to Liberia will go
a long way in reducing infectious diseases like Ebola which in turn
would be a global benefit. This would also go along way improving
the health system and disease surveillance system
PROCESS TO ENCOURAGE
PRIVATE SECTOR INVESTMENT
 MDB’S and IMF to provide Liberian government policy
guidance and technical assistance to mobilize domestic
resources.
 The next step is to promote and catalyze private investment
integrating the total cost for holistic transformation of citizen,
institution and infrastructure 2012-2017.
 Political commitment of the Liberian national government and
constituencies to improve the investment climate and
implementation of policies.
 MDB’s and IMF to partner with Liberian government to
address knowledge and data gaps that are a major hindrance
to development.
 Active engagement of the Private sector for capacity
development services of the local market.
is this feasible or just theory

YES IT IS FEASABLE
Lone Star Forever
Words to the Song
When freedom raised her glowing form on
Montserrado's verdant height,
She set within the doom of night, 'midst
low ring stars and thunderstorms the star
of liberty - and seizing from the waking
morn, its burnished shield of golden flame
she lifted in her proud name and raise a
people long forlorn to noble destiny
REFRAIN
The Lone Star forever!
The Lone Star forever!
O long may it float over land and over sea.
Desert it, no never! Uphold it, forever! O
shout for the Lone Star banner,
All hail.
“Development is about transforming the
lives of people, not just transforming
economies.”
― Joseph E. Stiglitz, Making
Globalization Work
WHAT HAS LIBERIA DONE TO
FOSTER PRIVATE INVESTMENT
REDUCED TIME TO
REGISTER A
BUSINESS
PARTNERSHIPS
TOWARDS PEACE
WHAT HAS LIBERIA DONE TO
FOSTER PRIVATE INVESTMENT
PARTNERSHIP WITH USAID IN
AGRICULTURE
INTEGRATION OF ICT AND
TELECOMMUNICATIONS IN ITS
DEVELOPMENT OBJECTIVES
WHAT HAS LIBERIA DONE TO
FOSTER PRIVATE INVESTMENT
PARTNERSHIP WITH USAID IN
AGRICULTURE
CONCESSIONAL
AGREEMENTS FOR
DEVELOPMENT RETURNS ON
INVESTMENT IN NATURAL
RESOURCE SECTOR
PARTNERSHIP FOR IMPROVED
HEALTH INFRASTRUCTURE
IMF RECOMMENDATIONS
Christine Largarde – Managing Director of IMF gave
the following recommendations:
 Liberia needs to scale up investment to address
infrstructure gaps
 Diversify the economy to support inclusive growth
 Invest in human development and
 Improve business climate by removing regulatory
hurdles for private sector investment
 IMF would raise the access levels for
concessional facilities by 50% and strengthen its
technical assistance
IMF COMMITMENT
Christine Largarde – Managing Director of IMF
gave the following commitment:
 IMF would raise the access levels for
concessional facilities by 50% and strengthen
its technical assistance and capacity building
services in tax administration, scaling up
infrastructure investment and support the
development goals
REFERENCE
 African Development Bank Group, 2013. Liberia
Infrastructure and Inclusive Growth, Tunis.
 Griffiths, Jesse; Martin, Matthew; Pereira , Javier; Strawson,
T., 2014. FINANCING FOR DEVELOPMENT POST-2015:
IMPROVING CONTRIBUTION OF PRIVATE FINANCE,
Belgium. Available at:
http://www.europarl.europa.eu/activities/committees/studies.d
o?language=EN
 Soubbotina, P, T., 2000. Beyond Economic Growth: Meeting
the challenges of Global Development 1st ed., Washington
DC.
 The World Bank Group, 2013. Financing for Development
Post-2015, Washington.
 The World Bank Group, 2015. From Billions to Trillions:
Transforming development finance post-2015 finance for
development: Multilateral development finance,
Unlocking private sector investment in liberia

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Unlocking private sector investment in liberia

  • 2. 1. Liberia is Africa’s oldest republic with a population of 4.29million. 2. Liberia remains among the poorest countries in the world 3. Its GDP growth rate in 2015 was 0.7% compared to 8.7% in 2013. 4. Its electricity coverage is 2% with a high electricity tariff of $0.49 5. Its infrastructure needs is estimated to be US $ 323 million for roads supported by World Bank, GIZ, SIDA , European commission and African Development Bank
  • 3. Obstacles to Financial Development in Liberia Poor state of infrastructure due to underinvestment . Narrow and underdeveloped financial sector with limited financial instruments High cost of electricity Inadequate access to safe drinking water and sanitation facilities Horizontal inequity from its private sector with poorly developed capacity of the Indigenous OBSTACLES TO INVESTMENT IN LIBERIA
  • 4. Private Sector Opportunities  Expansion of firm generation, reduce cost of electricity  Attract private sector investment to generation , transmission, distribution of electricity  Green bond for hydropower, solar, wind, waste to energy potential, biomass potential  Lack of highly networked public transport system
  • 5. Private Sector Opportunities  International cellular phones do not always work in Liberia.  Investment in health sector – expanding access to basic healthcare of acceptable quality.  Establishing an effective, responsive and sustainable healthcare delivery system and an effective supply chain
  • 7. BUILDING CAPACITY OF INDIGENOUS CITIZENS AND YOUTH Human development such as:  Improvement of knowledge and skills with opportunities for its efficient use  This translates to increased skilled workforce, better business conditions and greater democracy at all levels
  • 9. BALANCING ECONOMIC, SOCIAL AND ENVIRONMENTAL OBJECTIVES  Implementation of National policy on decentralization and national governance to constituencies.  Development of a growth plan that deliberately seeks to deliver development to those in the rural areas  Improving domestic public and private tax revenue systems at the constituencies  Improving infrastructure in terms of transport, power and communication networks  Improving investment climate, encouraging competition and use of financial instruments to encourage sustainable development
  • 11. HOW DOES IDA HELP ADDRESS HUMAN AND SUSTAINABLE DEVELOPMENT Helping Liberia move towards achieving sustainable development through six key enablers:  Local governance  Infrastructure  Human capital  Biodiversity  Green energy Technology  Trade
  • 12. TOTAL ESTIMATED COST OF THE AGENDA FOR HOLISTIC TRANSFORMATION OF CITIZEN, INSTITUTION AND INFRASTRUCTURE 2012-2017
  • 13. HOW DOES IDA HELP ADDRESS HUMAN AND SUSTAINABLE DEVELOPMENT  Liberia as a fragile state is benefiting from Africa 50 with African Development Bank supporting transformation and regional integration.  In 2016 the African Development Bank gave EUR 10,000,000 investment grant for Liberia energy access.  Liberia was greatly affected by the Ebola epidemic that crippled the health sector. This sector would benefit from private philanthropy with institutions like GAVI supporting development of vaccine against Ebola. Providing blended loans and grants to Liberia will go a long way in reducing infectious diseases like Ebola which in turn would be a global benefit. This would also go along way improving the health system and disease surveillance system
  • 14. PROCESS TO ENCOURAGE PRIVATE SECTOR INVESTMENT  MDB’S and IMF to provide Liberian government policy guidance and technical assistance to mobilize domestic resources.  The next step is to promote and catalyze private investment integrating the total cost for holistic transformation of citizen, institution and infrastructure 2012-2017.  Political commitment of the Liberian national government and constituencies to improve the investment climate and implementation of policies.  MDB’s and IMF to partner with Liberian government to address knowledge and data gaps that are a major hindrance to development.  Active engagement of the Private sector for capacity development services of the local market.
  • 15. is this feasible or just theory 
  • 16. YES IT IS FEASABLE Lone Star Forever Words to the Song When freedom raised her glowing form on Montserrado's verdant height, She set within the doom of night, 'midst low ring stars and thunderstorms the star of liberty - and seizing from the waking morn, its burnished shield of golden flame she lifted in her proud name and raise a people long forlorn to noble destiny REFRAIN The Lone Star forever! The Lone Star forever! O long may it float over land and over sea. Desert it, no never! Uphold it, forever! O shout for the Lone Star banner, All hail. “Development is about transforming the lives of people, not just transforming economies.” ― Joseph E. Stiglitz, Making Globalization Work
  • 17. WHAT HAS LIBERIA DONE TO FOSTER PRIVATE INVESTMENT REDUCED TIME TO REGISTER A BUSINESS PARTNERSHIPS TOWARDS PEACE
  • 18. WHAT HAS LIBERIA DONE TO FOSTER PRIVATE INVESTMENT PARTNERSHIP WITH USAID IN AGRICULTURE INTEGRATION OF ICT AND TELECOMMUNICATIONS IN ITS DEVELOPMENT OBJECTIVES
  • 19. WHAT HAS LIBERIA DONE TO FOSTER PRIVATE INVESTMENT PARTNERSHIP WITH USAID IN AGRICULTURE CONCESSIONAL AGREEMENTS FOR DEVELOPMENT RETURNS ON INVESTMENT IN NATURAL RESOURCE SECTOR PARTNERSHIP FOR IMPROVED HEALTH INFRASTRUCTURE
  • 20. IMF RECOMMENDATIONS Christine Largarde – Managing Director of IMF gave the following recommendations:  Liberia needs to scale up investment to address infrstructure gaps  Diversify the economy to support inclusive growth  Invest in human development and  Improve business climate by removing regulatory hurdles for private sector investment  IMF would raise the access levels for concessional facilities by 50% and strengthen its technical assistance
  • 21. IMF COMMITMENT Christine Largarde – Managing Director of IMF gave the following commitment:  IMF would raise the access levels for concessional facilities by 50% and strengthen its technical assistance and capacity building services in tax administration, scaling up infrastructure investment and support the development goals
  • 22. REFERENCE  African Development Bank Group, 2013. Liberia Infrastructure and Inclusive Growth, Tunis.  Griffiths, Jesse; Martin, Matthew; Pereira , Javier; Strawson, T., 2014. FINANCING FOR DEVELOPMENT POST-2015: IMPROVING CONTRIBUTION OF PRIVATE FINANCE, Belgium. Available at: http://www.europarl.europa.eu/activities/committees/studies.d o?language=EN  Soubbotina, P, T., 2000. Beyond Economic Growth: Meeting the challenges of Global Development 1st ed., Washington DC.  The World Bank Group, 2013. Financing for Development Post-2015, Washington.  The World Bank Group, 2015. From Billions to Trillions: Transforming development finance post-2015 finance for development: Multilateral development finance,