Finance Ministry launches US$4.8m post-Ebola project

The Ministry of Finance and Development Planning or MFDP in collaboration with the Central Bank, and Ministry of Commerce and Industry launches post-Ebola Reconstruction project for Small, Medium and Large businesses across the country.

The Ministry of Finance says the launch is made possible as the result of US$4.8 million provided by the World Bank to boost the Liberian economy, and help empowered small and medium businesses that suffered setback from the outbreak of the deadly Ebola disease. The post-Ebola reconstruction project launch was held under the theme, “Access to Affordable Domestic Finance for MSME in Liberia”, bringing together business owners, government officials and developmental partners.

Giving an overview on Tuesday, November 28, 2017 at the Monrovia City Hall, project coordinator Mr. Frederick Bobby Krah, says seven participating institutions were vetted by the Central Bank of Liberia, and confirmed and validated by the World Bank to help in the maintenance of the funds.

According to him, the cost of the project is US$4. 8 million of which 98 percent will go toward the project, saying “We have US$4 million that goes toward lending to MSME only, and as we speak today, we have US$3.5 million which have been lent to the seven participating institutions.”

The coordinator continues that the project is being managed in a format controlled by a steering committee that includes the Central Bank, MFDP, and the Commerce Ministry, respectively.

Mr. Krah explains that these steering committee meet quarterly to discuss the project, saying, “We have signed an agreement with those seven institutions which include Diaconia MDI, Foundation for Women, Link Business Link, Brac International, LBDI, Afriland Bank, and the GN Bank.”

According to him, there is no cap on how much the seven institutions will give to the various MSME, saying that initially, the project was intended for a partially credit guarantee for Ebola affected businesses during the inception in 2015.

Also giving the opening statement at the launch, Deputy Finance Minister for Economic Management Alvin Attah, who deputized for Finance Minister Bioma Kamara, says the exercise is meant to provide information on micro, small, medium and large enterprise finances secure thru the World Bank.

“We did secure a grant of US$4.8 million from the World Bank and we are striving to make MSME in Liberia with financing on sustainable terms”, says Mr. Attah.
He says the aim is to strengthen capacity for the Liberia private sector, not just financial institutions and banks, but to enable them to become economically vibrant to drive the economy.

According to Minister Attah, the objective of the launch is to bring together governments, development partners, banking institutions and business owners, among others, adding that it is the hope of the MFDP that the launch will offer a forum for open discussion on challenges and opportunities in helping MSME to access affordable domestic financing.

“We hope that this project will not end up as previous projects, because we know that this project has the propensity to provide about five hundred new loans, to MSME which could create more two thousand jobs for Liberians”.

The deputy finance boss continues that the project will also contribute to economic growth, including diversification of the economy, especially in rural areas.
Meanwhile, Commerce Minister Axel Addy, narrates that over the past four years the ministry has committed to the MSME program, stressing that it is important because the engines of the economy are people operating small shops, wheelbarrow sellers, and little markets in various communities.

“When we create an enabling environment, they go from micro to small, from small to medium, and from medium to large; this is why over the last four years officials at the MOC have committed to”, Minister Addy concludes.

By Lewis S. Teh-Editing by Jonathan Browne