World Bank Praises Liberia’s Economic Reforms, Highlights Private Sector Growth Potential

By: Ben TC Brooks |River Gee Correspondent

Monrovia, Liberia | March 24, 2026 | The World Bank Group has commended the Central Bank of Liberia – CBL, for making notable strides in maintaining monetary stability, strengthening the banking sector, and expanding digital financial services despite ongoing global economic uncertainties.

During an official visit to Monrovia on March 20, the World Bank Group’s Managing Director and Chief Knowledge Officer, Pascal Donohoe, described Liberia’s current economic trajectory as “a great moment of opportunity,” while cautioning that external risks remain significant.

Private Sector Seen as Key Driver of Jobs

Donohoe underscored the importance of private sector development in tackling unemployment, noting that nearly 90 percent of Liberian businesses employ fewer than eight people.

He highlighted the impact of the Liberia Investment, Finance and Trade – LIFT, Project, which has already disbursed approximately $6 million through seven financial institutions to over 200 small and medium-sized enterprises – SMEs.

Notably, about 40 percent of these businesses accessed commercial credit for the first time.

He also reaffirmed the World Bank’s commitment to supporting Liberia’s financial sector reforms, including the rollout of a Credit Reference System expected in April 2026, as well as broader insolvency reforms aimed at improving the business environment.

“This is a great moment of opportunity,” Donohoe emphasized, urging Liberia to sustain its reform momentum to build resilience against global economic shocks.

Welcoming the World Bank delegation, CBL Executive Governor Henry F. Saamoi outlined key achievements under the Bank’s ongoing reform agenda.

According to Saamoi, prudent monetary policy has resulted in a stable and predictable inflation environment.

Inflation dropped to 4 percent by the end of December 2025, the lowest level recorded in nearly two decades, and continued its downward trend into 2026, reaching 3.2 percent in January and 3.1 percent by the end of February.

According to a released the Governor also reported significant improvements in the banking sector, driven by stronger regulatory oversight and enhanced compliance measures.

Non-performing loans – NPLs, declined sharply from 21.6 percent in January 2025 to 12.79 percent by February 2026.

In addition, the introduction of a new family of Liberian banknotes has strengthened public confidence and improved the efficiency of cash transactions nationwide.

Digital Payments Expand Rapidly

Liberia’s digital financial ecosystem is also gaining momentum.

The Central Bank revealed that its Instant and Inclusive Payment System – IIPS, launched on December 16, 2025, has already processed more than 1.53 million transactions.

These transactions, valued at approximately LRD 1.43 billion and $9.03 million as of March 15, 2026, were conducted using just two services: person-to-person and government-to-person payments.

“These figures demonstrate strong early adoption and the potential for deeper financial inclusion,” the CBL noted.

The Bank is also advancing plans for a National Electronic Payment Switch, which will integrate all financial institutions into a unified system, improving efficiency and interoperability across the sector.

Saamoi highlighted ongoing improvements in institutional governance, including stronger internal controls and enhanced transparency.

These measures have enabled the Central Bank to record operational surpluses in both 2024 and 2025; its first such achievement in over 20 years.

Strong International Support Continues

Donohoe’s visit marks his first trip to West Africa since assuming his role at the World Bank Group in November 2025 and signals continued international support for Liberia’s economic reform agenda.