During the official launch of the World Bank's 2024 Liberia Economic Update (LEU), Liberia Electricity Corporation (LEC) Chief Operating Officer Kwame Kpekpena gave assurances of a more stable electricity supply during the country's critical dry season. The promise came during a panel discussion that was part of the event, which highlighted both the challenges and advancements in Liberia's energy sector.
The theme of the report, "Powering Growth with Reliable, Affordable, and Sustainable Energy Access", centers on the essential role that stable energy provision plays in fostering Liberia's economic growth and improving the quality of life for its citizens. As the country aims for middle-income status by 2030, achieving reliable and affordable energy access is a key part of the strategy.
The launch event was held on September 12 at the Monrovia City Hall.
Improving energy access and affordability
Kpekpena outlined several steps that LEC has taken in recent years to enhance electricity provision and affordability for Liberia's population. One of the most significant achievements has been the reduction of electricity prices from 53 cents per kilowatt hour to 22 cents, as well as a notable decrease in commercial losses from 51% to 31% in just one year. He also noted that outage hours had decreased from 433 hours last year to less than 100 hours, largely due to LEC's connection to the Côte d'Ivoire-Liberia-Sierra Leone-Guinea (CLSG) interconnection project.
"For years, LEC's commercial losses were 51 percent. Last year, at the end of the year, it came to 31 percent. We have seen electricity prices drop. We've dropped from 53 cents per kilowatt hour to 22 now, per kilowatt hour since 2022," Kpekpena said during the panel discussion. "Outage hours dropped significantly, partly because we connected to the CLSG."
Despite these improvements, Kpekpena acknowledged that much work remains. Power generation capacity must be expanded to meet growing demand, and more effective strategies are needed to combat power theft, a longstanding issue that continues to hurt LEC's financial stability. In some cases, metered customers have found ways to bypass the meters, exacerbating the corporation's revenue challenges.
High hopes for the dry season
As Liberia faces significant dry-season electricity shortages each year, Kpekpena shared hopeful news during the discussion. He revealed that the Republic of Ghana is prepared to supply 50 megawatts of electricity to Liberia, but the energy would need to be transmitted through Côte d'Ivoire. Kpekpena emphasized that permission from Côte d'Ivoire is necessary for this deal to move forward, but once secured, it could significantly enhance LEC's ability to provide stable electricity during the dry months.
"This is part of LEC's broader strategy to ensure that Liberia has sufficient electricity provision not only during the rainy season but also during the dry season," he stated.
This potential deal with Ghana represents a step toward addressing one of the most pressing challenges outlined in the Liberia Economic Update: the need to boost generation capacity, particularly during the dry season, when hydroelectric power output is lower due to reduced water levels at the Mt. Coffee hydropower plant, the country's largest energy provider.
Key stakeholders' perspectives
The panel discussion followed the report's launch and was moderated by Mack Capehart Mulbah, the World Bank's Senior Social Protection Specialist. Panelists included Deputy Finance Minister for Budget and Development Planning Tanneh G. Brunson, LEC's COO Kwame Kpekpena, CEO of Kumba Bendu-National Toiletries Fomba Trawally, and World Bank Senior Energy Specialist Mohammad Saqib. Each provided their perspectives on Liberia's energy sector and its impact on economic development.
Deputy Minister Brunson stressed the importance of decentralizing the government's energy plans, indicating that in the coming year, the Government of Liberia will roll out a decentralization strategy, which will allow counties and individual agencies more control over their energy initiatives. "We hope that at the county level, we can build up their capacities to be able to undertake some of these services themselves, so that everything won't be left on the central government," she said, with hints of implementing solar power. She also noted that solar farms were being considered as a complement to the current energy supply.
Brunson's remarks highlighted the government's commitment to addressing energy gaps, particularly through alternative energy sources and fiscal measures such as potential taxes on certain business activities, which could be used to fund energy initiatives.
From a business perspective, Fomba Trawally, CEO of Kumba Bendu-National Toiletries, shared a personal account of how the unreliable electricity supply has impacted his operations. Until 2021, Trawally's business was entirely dependent on generators, costing him over half a million US dollars in losses. "From 2013 to 2021, my loss was US$586,000. If I could use LEC, I would have spent US$216,000," he said. His testimony underscored how access to affordable and reliable electricity is not just a matter of convenience but a critical factor in the success of businesses and job creation in Liberia.
World Bank's Support for Energy Reforms, Expansion
World Bank Country Manager Georgia Wallen provided insights into the international community's role in supporting Liberia's energy sector. She highlighted the World Bank's Liberia Electricity Sector Strengthening and Access Project (LESSAP) and its newly approved second phase, which will provide access to electricity for 494,000 more Liberians. In total, LESSAP aims to give either new or improved access to electricity for 790,000 people, closing 14% of the country's current energy access gap.
Wallen also underscored the importance of continued international cooperation and investment in the sector, particularly through initiatives like "Mission 300," a joint effort by the World Bank and the African Development Bank to connect 300 million people across Africa to electricity by 2030.
"Reliable and affordable energy is key to unlocking economic growth, attracting investment, and ensuring that the benefits of development reach every Liberian, especially those in rural areas," Wallen said. She added that sustainable energy solutions, such as expanding the Mt. Coffee hydropower plant and developing utility-scale solar plants, would be vital for meeting Liberia's future energy demands.
"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 Wallen. "The World Bank is actively backing these initiatives, with 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.
A Path Forward for Liberia's Energy Sector
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
The Liberia Economic Update underscores the urgency of addressing the country's energy challenges as part of its broader development strategy. Although the country has made notable progress in expanding electricity access and reducing costs, significant gaps remain. As noted by Kpekpena, sustained investments in energy infrastructure, improved operational efficiency, and a stronger regulatory environment are essential for meeting the needs of Liberia's population and supporting its economic ambitions.
The potential deal with Ghana, coupled with ongoing reforms and investments, could provide much-needed stability during the dry season, alleviating one of the major bottlenecks in Liberia's energy supply. However, success will depend on continued efforts from the government, private sector, and international partners.
As Liberia moves toward its 2030 goal of universal energy access, the LEC's commitment to providing more stable electricity, particularly during the dry season, offers hope for a brighter, more prosperous future.
In closing remarks, World Bank Senior Economist Muhammad Waheed emphasized the need for Liberia to identify and harness indigenous growth engines to ensure sustainable development. He noted that while the country has experienced growth over the past three years, much of this has been driven by resource-seeking foreign direct investment (FDI), which offers limited benefits to the broader economy.
Waheed highlighted the country's fiscal fragility, stressing the importance of addressing these vulnerabilities to prevent adverse long-term consequences. He urged Liberia to focus on investing in human capital, as sustainable growth will require more than reliance on extractive industries. Increased productivity, he argued, is tied directly to improved human capital, and without such investment, Liberia risks stalling its progress. Waheed's remarks called for a coordinated effort to promote sectors beyond resource extraction, thereby fostering more inclusive and resilient economic growth.
