As part of the Government of Liberia (GOL) payroll decentralization program being implemented by the Ministry of Finance, President Ellen Johnson Sirleaf recently dedicated the first cash center in Bopolu, Gbapolu County.

Speaking at the dedication ceremony in Bopolu on Monday July 22, 2013, President Sirleaf said that the establishment of the cash center in the County will provide incentive for civil servants, as they are now poised to regularly receive their salaries on time and with less constraint.

She urged banking institutions to begin the construction and or opening of branches bin Bopolu so as to take over the cash center which is expected to stimulate economic activities in that city and other non-banking counties where cash centers have been established.

President Sirleaf used the occasion to call on authorities at the Ministry of Finance (MOF) to speedily move the payroll decentralization program to remote areas in non-banking counties to alleviate the constraints face by civil servants in getting their salaries.

For her part, Deputy Finance Minister for Expenditure and Debt Management, Angela Cassell-Bush said the cash center will alleviate the hardship associated with civil servants salary payment in Gbapolu County as they safely cash their pay checks upon receipt.

She furthered that the cash center will provide low cost incentive and housing facilities for banking institutions wanting to establish branch in the County.

Minister Bush, who presented the cash center on behalf of Finance Minister Amara Konneh to the Liberian president, noted that government is already in negotiation with some commercial banking institutions including Global Bank to consider an immediate takeover of the center.

The establishment of the cash center is part of government's effort to decentralize civil servants salary payments across the country. The dedication of a cash center in Bopulo is the forth in a series , as the Ministry of Finance recently dedicated cash center in Grand Kru, River Gee and River Cess Counties.

Liberia-African Economy

Liberia's post-war economic growth was sustained in 2012, with estimated real gross domestic product (GDP) growth of 8.9%, led by the first full year of post-conflict iron ore exports, buoyant construction, and strong performance in services. Real GDP is projected to expand by 7.7% in 2013 and 5.4% in 2014, supported by further iron ore expansion and concession-related foreign direct investment (FDI). Liberia's economic outlook remains vulnerable to fluctuations in commodity prices, particularly for its key exports, rubber and iron ore. Potential declines in FDI and overseas development assistance, including the partial drawdown of the substantial UNMIL force, could also affect economic performance. Consumer price inflation moderated to 6.9% in 2012, thanks to lower international food and fuel prices, and is expected to further slow to 5.1% in 2013.

In December 2012, Liberia launched the Agenda for Transformation (AFT), its second poverty reduction strategy. The AFT intends to remove key infrastructure constraints in energy, roads, and ports, and to support youth and capacity building. The government has secured financing to rehabilitate the Mount Coffee Hydropower plant, which could come online at end of 2015 and would help address the country's substantial energy shortage. The government prepared its FY 2012/13 budget in a three-year Medium Term Expenditure Framework (MTEF). However, despite substantial progress in public financial management (PFM) and transparency, substantial challenges remain, and pay reform will be necessary to improve public sector capacity.

Natural resources continue to play a leading role in Liberia's economy. Iron ore, rubber, and timber dominate exports, and the oil and palm oil sectors offer much potential. The management of these resources has come under scrutiny in the past year. The abuse of Private Use Permits in the forestry sector has resulted in a quarter of Liberia's land being contracted out to foreign companies with little oversight. Land access disputes have also slowed planting in the palm oil sector, and oil discoveries have been overshadowed by the need to reform the sector's institutions. Investments in power and transportation should foster linkages between Liberia's private sector and its natural resources sector, while increasing productivity and market access for the majority of households in rural areas that are engaged in small-scale agriculture. Infrastructure will take years to develop, however, and poor access to credit will continue to constrain growth. Concession agreements could create up to 100 000 local jobs over 10 years, but this will make limited impact on the 50 000 youth joining the labour force every year. Increased employment creation would help decrease the risk of instability.