The World Bank on Thursday released the fifth edition of its annual Liberia Economic Update, titled Powering Growth with Reliable, Affordable, and Sustainable Energy Access. The report offers a comprehensive analysis of recent economic developments in Liberia, underscoring the crucial role of reliable energy in fostering sustainable growth.
The update highlights key advancements in Liberia's energy sector, including notable progress in power generation and the expansion of energy access. However, despite these gains, the country faces significant power shortages, calling for substantial investments to achieve reliable, affordable, and sustainable energy access for all Liberians.
A recent World Bank Economic Update offered a shine of hope for Liberia, revealing a significant reduction in the national poverty rate from 63% in 2020 to 59.7% in 2023.
According to the report, the decrease in poverty is largely due to the resilience of the economy and proactive measures taken by the government to stabilize the nation's financial environment.
"The National Electrification Strategy of Liberia, developed by the Government with support from development partners, sets out bold plans to achieve universal energy access by 2030 through a combination of grid expansion, densification, utility revenue protection programs, and off-grid solutions," said Georgia Wallen, World Bank Liberia Country Manager.
"The World Bank is actively backing these initiatives, with a strong focus on increasing generation capacity to reach Liberians nationwide and promote Liberia's transition toward sustainable growth and development."
The report also underscores the importance of strengthening fiscal discipline to ensure macroeconomic stability, a critical factor in attracting foreign and domestic investments. This stability - essential for improving the business climate - requires a comprehensive approach, combining legal, regulatory, and practical reforms to foster private sector growth.
"Ambitious reforms are essential to foster private sector participation in both the economy and the energy sector," said Gweh Gaye Tarwo, Liberia Country Economist and lead author of the report. "Without transformative reforms to enhance the business environment and competitiveness, increased private sector involvement cannot be achieved," he added.
