The Central Bank of Liberia (CBL) has unveiled an ambitious five-year strategic plan, spanning from 2025 to 2029, aimed at digitally transforming Liberia’s economy and bolstering the financial sector. The plan, presented to sector partners and the media, outlines a comprehensive roadmap for achieving macroeconomic stability, promoting financial inclusion, and driving sustainable economic development across the nation. With a total projected cost of USD$63.32 million, the plan encompasses fifty-five individual projects, emphasizing the CBL’s commitment to modernizing and strengthening Liberia’s financial landscape. Initial funding commitments from donor partners have secured USD$16.01 million, leaving a funding gap of USD$47.3 million that the CBL will need to address to fully realize the plan’s objectives.
Central to the CBL’s strategic vision is the digitalization of the Liberian economy. This initiative will involve the launch of a national electronic payment switch, a crucial step towards modernizing financial transactions and expanding access to financial services. The CBL has identified GSM companies as key partners in this endeavor, leveraging their existing infrastructure and reach to facilitate the adoption of digital payment systems nationwide. This focus on digitalization aligns with the Liberian government’s broader economic agenda, which emphasizes technological advancement as a driver of growth and inclusion. By embracing digital technologies, the CBL aims to streamline financial processes, reduce transaction costs, and enhance transparency within the financial system.
The CBL’s strategic plan is built upon five core pillars: Domestic Price Stability, Regional Integration, Operational Efficiency, Financial Stability, Financial Inclusion, and Digital Financial Services. These pillars represent the foundational elements of the CBL’s strategy and guide its efforts to achieve its overarching objectives. Domestic price stability is crucial for maintaining a healthy economy, while regional integration aims to strengthen Liberia’s economic ties with its neighbors. Operational efficiency focuses on streamlining internal processes within the CBL, while financial stability seeks to strengthen the resilience of the Liberian financial system. Finally, financial inclusion and digital financial services work in tandem to expand access to financial products and services, particularly for underserved populations.
To ensure the plan’s effectiveness and relevance, the CBL engaged in extensive consultations with a broad range of stakeholders. The Strategic Plan Committee (SPC) sought input from international partners, market participants, rural communities, credit unions, and other key actors. This inclusive approach aimed to incorporate diverse perspectives and tailor the plan to the specific needs of the Liberian population. The CBL also sought to address issues of public trust and confidence in the banking sector, reflecting its commitment to transparency and accountability. This effort to rebuild public trust is essential for fostering a stable and thriving financial environment.
The timing of the strategic plan coincides with Liberia’s new four-year Extended Credit Facility (ECF) program with the International Monetary Fund (IMF). This alignment underscores the interconnectedness of the CBL’s initiatives with broader macroeconomic goals and demonstrates the Bank’s commitment to fiscal responsibility. The ECF program provides a framework for economic reform and stability, creating a conducive environment for the implementation of the CBL’s strategic priorities. International partners, including the European Union, the African Development Bank (AfDB), the United Nations Development Programme (UNDP), and the U.S. Embassy, have expressed strong support for the CBL’s strategic plan. Their commitment to collaborating with the CBL reflects the importance of this initiative for Liberia’s economic development. These partnerships will provide crucial resources and expertise to support the implementation of the plan’s various projects.
The CBL’s five-year strategic plan represents a significant step towards modernizing and strengthening Liberia’s financial sector. By prioritizing digitalization, financial inclusion, and macroeconomic stability, the CBL aims to create a more inclusive and resilient economy. The strong support from international partners and the alignment with the government’s economic agenda bode well for the successful implementation of the plan and its positive impact on Liberia’s future. The plan’s theme, “Optimal Use of Technology for Macroeconomic Stability and Inclusive Economic Growth,” encapsulates the CBL’s vision for a technologically advanced and prosperous Liberia.
