In a significant step toward advancing Liberia's digital economy and ensuring compliance with national regulations, the Liberia Telecommunications Authority (LTA) and the Central Bank of Liberia (CBL) have formalized a partnership through the signing of a Memorandum of Understanding (MOU).
This agreement establishes a collaborative framework aimed at enhancing financial transactions via telecommunications services while maintaining the statutory independence and authority of both institutions.
It will also enhance cooperation and collaboration between the LTA and CBL, accelerate financial inclusion and bridge access gaps, facilitate affordable access to economic and telecommunications services, support efficient access of financial institutions to telecommunications networks, ensure that telecommunications networks delivering financial services are secure and comply with consumer protection and data privacy requirements.
The MOU, which was signed on Friday, August 30, 2024, outlines a mutual commitment to enforcing respective Acts, regulations, rules, and standards, thereby ensuring a seamless convergence of the telecommunications and financial sectors in Liberia. Furthermore, the LTA will now join the National Payments Council (NPC), a body that supports the Central Bank in maintaining secure and efficient payment systems.
During the signing ceremony, Henry F. Saamoi, Acting Executive Governor of the Central Bank of Liberia, welcomed officials and stakeholders to the event, describing the collaboration as a pivotal moment in the collective efforts to enhance synergy between the telecommunications and financial sectors in Liberia.
"As we gather here today, we are reminded of the increasingly interconnected world in which we live," Saamoi remarked. "The convergence of telecommunications and financial services has become a critical driver of socio-economic development, enabling us to reach more citizens, particularly those in remote areas, and providing them with access to essential financial services."
Several government officials at the signing ceremony of the MOU between LTA and CBL
He emphasized the importance of this partnership in harnessing technology to foster financial inclusion, bridge access gaps, and enhance the overall economic well-being of the Liberian people.
"The success of this collaboration will depend not only on the leadership of the LTA and CBL but also on the commitment of all stakeholders, including the legislature, other regulatory agencies, and private sector partners," he added.
Abdullah L. Kamara, Acting Chairperson of the Liberia Telecommunications Authority, expressed his excitement about the signing of the MOU, noting that the agreement was long overdue.
"Today, we are delighted to join our sister regulatory body, the CBL, in signing this Memorandum of Understanding," Mr. Kamara stated. "This collaboration is crucial for developing and maintaining the regulatory environment necessary to leverage technology for digital and financial inclusion."
Kamara highlighted the need for better collaboration and results-oriented cooperation, given the increasing convergence of ICT and financial services over public telecom networks.
He acknowledged that while this convergence presents enormous opportunities for economic growth and national development, it also introduces new challenges, particularly in areas such as cybercrimes, poor service quality, and fair competition.
"Realizing that these risks and challenges are common to both sectors, we have decided to take a shared approach by working together more closely," Kamara noted. "Despite the LTA and CBL having independent statutory mandates, innovation will continue to blur the lines that separate our sectors, making enhanced cooperation essential."
Kamara also called on the private sector to seize this opportunity to contribute to Liberia's economic transformation. "We believe this partnership will create the synergy needed to safeguard consumer rights, foster innovation, and drive sectorial development," he added.
House Chairman on Banking and Currency, Representative Dorwohn T. Gleekia, also spoke at the event, expressing his delight that the long-awaited agreement had finally come into effect.
"This agreement has been in the works for years, and seeing it come to fruition is truly rewarding," Gleekia said. "We in the legislature will continue to enact the necessary legislation to support this initiative because we understand its potential to drive financial inclusion and lift our people out of poverty."
Similarly, Representative Ivan K. Jones, Chairman of the House Committee on Posts and Telecommunications, hailed the MOU as a significant milestone in Liberia's history.
He acknowledged the challenges that previous administrations faced in getting the agreement signed and emphasized the importance of collaboration between telecommunications and banking institutions to create a stronger financial market.
"This MOU will go a long way in transforming our telecommunications and financial sectors," Jones remarked. "We have seen many banking institutions struggle to compete due to high charges from service providers, particularly Mobile Money Operators (MNOs). Today marks a new beginning where both sectors can work together to create a stronger financial market."
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Jones reassured both the LTA and CBL of the legislature's unwavering support. "You can count on us for cooperation, collaboration, and coordination. This signing is just the beginning of a journey that will yield substantial benefits for our economy and our people."
In her welcome remarks, Mrs. Miatta O. Kuteh, Director of the Payment Systems Department at the CBL, underscored the importance of the MOU in strengthening regulations and oversight in the financial sector.
She emphasized the shared commitment of the LTA and CBL to navigating the national payment system, enhancing existing regulations, and developing new frameworks to support innovation and extend financial services, particularly to the under banked.
The MOU between the LTA and CBL represents a strategic move to ensure that Liberia's financial and telecommunications sectors are well-regulated, secure, and poised for growth, ultimately contributing to the country's economic development.
Meanwhile, the signing of the MOU was also attended by the Minister of Posts and Telecommunication, Sekou Konneh, Senate Chairman on Banking and Currency, Representative Nya D. Twayan, as well as staff from both institutions, including LTA Commissioner Patrick Honnah, Commissioner Clarence Massaquoi, and Dr. Musa Dukuly, Deputy CBL Governor for Economic Management, among others.
