Liberia has entered intensive negotiations with the International Monetary Fund (IMF) over climate-linked financing estimated at $1.4 billion, as the Fund's Third Review Mission convened high-level discussions with the country's economic managers and key sector stakeholders on Monday, January 12, 2026.
The talks, held at the Ministry of Finance and Development Planning in Monrovia, focused on unlocking concessional funding under the IMF's Resilience and Sustainability Facility (RSF), aimed at strengthening Liberia's capacity to respond to climate change, improve disaster preparedness, and enhance macroeconomic stability.
The IMF delegation was led by Mission Chief Daehaeng Kim and Resident Representative Joel Chiedu Okwuokei, while Liberia's side was headed by Finance Minister Augustine Kpehe Ngafuan, joined by senior officials from the energy, public works, environment, and water sectors.
"The RSF provides Liberia with an opportunity to access highly concessional financing equivalent to 150 percent of its IMF quota, approximately $1.4 billion in Special Drawing Rights (SDRs)," Mission Chief Kim told reporters. "This support is designed to help the country implement climate adaptation, energy reforms, and public health preparedness programs in a sustainable and resilient manner."
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Under the RSF framework, funds are provided on favorable terms, including a 20-year maturity, a 10-year grace period, and below-market interest rates, making it one of the most affordable long-term funding mechanisms available to vulnerable economies.
Minister Ngafuan emphasized Liberia's need for such support, highlighting the country's heightened exposure to climate risks, including coastal erosion, flooding, erratic rainfall, and infrastructure fragility.
"Liberia faces significant climate vulnerabilities that impact public finances, energy supply, food security, and water resources," he said. "The RSF financing will allow us to implement key policy reforms, invest in green infrastructure, and strengthen institutional capacity while ensuring macroeconomic stability."
Discussions also focused on structural and policy reforms required to meet RSF benchmarks, including climate-responsive public investments, improved environmental governance, and sector-specific initiatives in energy, water, and infrastructure.
"Access to RSF resources is performance-based," Resident Representative Okwuokei explained. "Liberia's eligibility depends on credible policy commitments, effective implementation, and measurable development outcomes."
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Liberian sector stakeholders provided detailed briefings on supply-side constraints, operational bottlenecks, and investment inefficiencies that must be addressed to ensure the funds are effectively utilized.
Beyond direct financial support, IMF officials stressed that the RSF is intended to catalyze additional financing from development partners and private investors, further strengthening Liberia's long-term climate resilience.
"The facility is not just about money; it is about creating confidence, enabling policy credibility, and attracting further investment to scale up climate and disaster preparedness initiatives," Kim said.
The Third Review Mission comes amid broader efforts by the Liberian government to stabilize the economy, enhance public financial management, and accelerate climate-resilient and inclusive growth. Further technical discussions are expected in the coming weeks as Liberia works to meet the policy and institutional benchmarks required for RSF approval.
Minister Ngafuan expressed optimism about the ongoing engagement, stating: "We are committed to implementing the reforms required and ensuring that this funding translates into tangible results for our people, particularly in climate adaptation, infrastructure development, and sustainable growth."
