(Ecofin Agency) - Liberia will receive $640 million from the United States Agency for International Development to finance its development project for over five years (2019-24). The agreement deal was signed on May 22 with the United States.
The project aims to promote development through private sector-led economic growth by focusing on a series of reforms and the training of a healthy, productive, and educated workforce. Specifically, this program pursues a threefold purpose: to promote a market-centered inclusive economic growth conducive to employment creation; to implement inclusive and efficient governance led by reforms and greater responsibility; and finally to establish the foundations of growth strengthened by a healthy, productive and educated population.
Welcoming this milestone in a pandemic context, the Liberian finance minister, Samuel D. Tweah (pictured), said the program is closely linked to the pro-poor development program launched by the government in 2018.
Liberia suffered a negative growth of -2.5% in 2019 with inflation at 27%, and the current covid-19 crisis does not augur well for the economy. The International Monetary Fund sees the country’s public debt at 62.8% of GDP this year (up from 55.4% in 2019). However, the institution forecasts growth at 4% next year thanks to the 4-year economic and financial program ongoing in the country.