MONROVIA – 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 provides a comprehensive analysis of recent economic developments in Liberia, emphasizing the critical role reliable energy plays in driving sustainable growth.
The update highlights key advancements in Liberia’s energy sector, including progress in power generation and expanding energy access. However, despite these achievements, Liberia continues to face significant power shortages, underscoring the need for substantial investments to ensure reliable, affordable, and sustainable energy access for all citizens.
“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 strong focus on increasing generation capacity to reach Liberians nationwide and promote Liberia’s transition toward sustainable growth and development.”
The report also stresses the importance of strengthening fiscal discipline to ensure macroeconomic stability, which is vital for attracting both foreign and domestic investments. This stability is key to improving the business climate and requires a holistic approach, integrating legal, regulatory, and practical reforms to stimulate 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.
At the launch of the Liberia Economic Update (LEU) report, the World Bank announced a US$45 million investment, approved in June 2024, to provide electricity to 494,000 more Liberians, addressing 14% of the energy access gap. The goal is to reach a total of 790,000 people. World Bank Country Manager for Liberia, Madam Georgia Wallen, disclosed that the Liberia Electricity Corporation (LEC) has significantly reduced revenue losses.
“In June, the Bank approved an additional $45 million investment in the energy sector – the second phase of the Liberia Electricity Sector Strengthening and Access Project (LESSAP 2),” she explained. Upon completion, this project will provide electricity access to 494,000 more Liberians, reducing the energy access gap by 14%. The project aims to reach a total of 790,000 people with new or improved access to electricity.
The World Bank, together with the Government of Liberia and public and private sector partners, is intensifying efforts to connect six out of ten Liberians who currently lack energy access. Madam Wallen emphasized the urgency of addressing this issue for Liberia’s long-term sustainable development.
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.
Georgia Wallen, World Bank Liberia Country Manager.
Speaking at the official launch of the LEU, Madam Wallen also highlighted the World Bank’s collaboration with the African Development Bank (AfDB) to connect 300 million Africans to electricity by 2030, with Liberia’s energy access agenda as a key focus. She reiterated the World Bank’s commitment to supporting Liberia’s energy sector, with a strong emphasis on increasing generation capacity and expanding access to electricity as essential drivers of sustainable growth and development.
Last year, the World Bank and AfDB announced “Mission 300,” a joint initiative to connect 300 million people in Africa to electricity by 2030. Madam Wallen reaffirmed the World Bank’s support for Liberia’s energy access goals, stating that these efforts are aligned with the broader mission of “Mission 300.”
The latest edition of the Liberia Economic Update focuses on the theme “Powering Growth with Reliable, Affordable, and Sustainable Energy Access.” The report examines recent economic developments in Liberia, with a special focus on the critical role of reliable energy in driving sustainable growth and improving the quality of life for the Liberian people. Madam Wallen acknowledged that while Liberia is laying the foundation for better oversight and greening of the energy sector, significant challenges remain, particularly in increasing generation capacity during the dry season to reduce electricity shortages and enhance reliability.
Deputy Minister for Budget and Development Planning, Tanneh Geraldine Brunson, expressed gratitude to the World Bank for its support in Liberia’s economic recovery. She acknowledged the challenges in energy infrastructure, particularly in rural areas, but highlighted the importance of reliable and affordable energy for driving growth and job creation across various sectors. The economic update provides valuable insights into the state of the energy sector and will inform policymaking as Liberia works toward sustainable development.
Ambitious reforms are essential to foster private sector participation in both the economy and the energy sector. Without transformative reforms to enhance the business environment and competitiveness, increased private sector involvement cannot be achieved.
Gweh Gaye Tarwo, Liberia Country Economist and lead author of the report
World Bank Senior Economist for Liberia, Mr. Muhammad Waheed, in his closing remarks, underscored four key messages from the report. He noted that Liberia’s recent economic growth has been largely driven by global commodity markets, but the country needs to develop internal growth engines to reduce its reliance on volatile external factors. He also highlighted fiscal fragility, which contributes to macroeconomic instability and affects financing, debt sustainability, inflation, and growth.
Waheed further explained that most Foreign Direct Investment (FDI) in Liberia is resource-seeking, focusing on the country’s minerals, with limited investment in efficiency or market-seeking sectors. This limits economic spillovers, such as productivity improvements and better managerial practices. He stressed the need for a more diversified investment strategy to drive sustainable growth.
The Liberia Economic Update also emphasized the pivotal role of reliable energy in fostering sustainable development and improving the quality of life for Liberians. It assesses the country’s progress in the energy sector, noting a sixfold increase in domestic generation capacity and expanded access to electricity for about a third of the population.
The report concludes with a call to action, urging Liberia to take bold steps to realize its ambition of becoming a middle-income country by 2030. This includes delivering universal energy access, as outlined in the National Electrification Strategy and the Rural Energy Strategy and Master Plan. The Liberia Economic Update provides a comprehensive assessment of progress, challenges, and recommendations to accelerate the achievement of this crucial goal.
