Liberia News: Significant Progress In One Year

…Boakai Says His Gov’t Has Managed Inflation Prudently

Monrovia-Liberian President, Joseph Boakai says his government has managed inflation prudently reducing it to 7.7% by the end of 2024, down from 10.1% in 2023.

 

By Mark N. Mengonfia

Monrovia-Liberian President, Joseph Boakai says his government has managed inflation prudently reducing it to 7.7% by the end of 2024, down from 10.1% in 2023.

Speaker at his second State of the Nation Address, thanked sound fiscal and monetary policies his government has in place. “We expect inflation to decrease further to 6.0% in 2025” the President said. He further told the Liberian legislature that the country’s international reserves have improved to US$458.9 million, and the Liberian dollar has appreciated by 4.7% against the US dollar.

He said the Central Bank has reduced the monetary policy rate from 20% to 17%, boosting confidence in the financial system. “As a result, private sector credit has increased by 9.1%” the president said.

The Liberian leader added that efforts to strengthen financial governance are underway, focusing on reducing operational costs and addressing audit recommendations. “Our participation in the IMF’s Extended Credit Facility (ECF) program will help rebuild reserves, strengthen fiscal policy, and enhance domestic revenue through improved tax collection and streamlined exemptions” he intoned.

Among other things the president said they have also made progress in modernizing financial systems, improving access to finance for micro, small, and medium enterprises (SMEs), and increasing financial inclusion, which now covers 52% of the adult population.

According to him, implementing the National Electronic Payment Switch (NEPS) and the transition to a cashless economy further demonstrate his government’s commitment to a stable, inclusive, and resilient economy.

“The insurance sector is also being strengthened, with reforms underway to establish an independent Insurance Commission. The establishment of Special Economic Zones will further diversify the economy, promote job creation, and foster inclusive development” he added.

He reported to the legislature that over the past year, his administration has focused on transforming Liberia’s investment climate stating, “We are implementing policy changes to attract investment, including simplifying regulations, reducing red tape, and strengthening legal frameworks while ensuring social protection and local empowerment.”

President Boakai said his administration engaged both domestic and international investors, showcasing Liberia as a land of untapped opportunities. He said while some key agreements are still pending, “I am pleased to report that we are actively negotiating with major multinational companies in energy, mining, agriculture, infrastructure, and technology. Once finalized, these negotiations are expected to bring over $3 billion in investments to our economy.”

He indicated that looking ahead, his administration anticipates a promising medium-term outlook, with expected growth rates of 5.8% in 2025.

He said, “We successfully passed the 2025 national budget in the amount of US$880.7 million before the start of the fiscal year—the first time this has happened in the post-war period. Passage of the budget before the start of the fiscal year will also make the execution of the national budget more predictable and efficient.”

 

 

 

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