The World Bank has unequivocally reaffirmed its deep commitment to Liberia’s economic transformation, emphasizing the central and critical role of Micro, Small, and Medium Enterprises (MSMEs), which it lauded as “bright stars and beacons of hope.” Speaking at the Seventh National MSME Conference and Trade Fair, the World Bank Country Manager underscored that building the foundations for “more and better jobs” is the core objective of the new Country Partnership Framework.
The World Bank’s recent Liberia Economic Update highlights several critical challenges within the private sector that necessitate intervention. The economy is heavily characterized by MSME dominance, with a staggering 90% of the private sector consisting of micro-firms, typically employing only one to eight people. This overwhelming presence of very small businesses keeps the majority of the working population in low-wage, low-productive, and vulnerable employment, resulting in low-quality employment overall. Furthermore, the private sector’s current structure means that young, skilled, and educated Liberians are often significantly underemployed, as the economy struggles to generate the meaningful, stable, and well-paying jobs needed. Tackling these realities requires concerted collaboration across government at all levels, the private sector, and development partners.
The World Bank Group is actively working with the Liberian government to unleash private sector development by tackling key barriers, principally through the Liberia Investment, Finance and Trade (LIFT) Project.
The LIFT Project is providing targeted support to help MSMEs scale by unlocking access to finance, markets, and capabilities. This includes providing $6.5 million in direct financing to MSMEs through eight participating financial institutions, including banks and microfinance institutions. To make lending more efficient and less risky, the project is actively working to strengthen credit risk assessment and establish a movable collateral registry to enable lenders to better appraise and serve MSMEs. Crucially, the Bank is investing over $3.5 million in capacity building, providing training and technical assistance to help MSMEs become investment-ready and capable of sustainable growth.
Beyond direct support, the Bank is supporting crucial policy reforms in three key areas: Business Entry, by simplifying formalization and business registration; Investment & Trade, by easing cross-border trade; and Attracting Investment, which integrates Liberian MSMEs through a new supplier development portal.
Finally, recognizing the unique challenges faced by women and youth-led businesses, the Bank is expanding tailored support through additional projects such as the Liberia Women Empowerment Project and the REALISE Project. These initiatives focus specifically on expanding training, mentoring, and financing to help these enterprises secure a clear pathway to much-needed growth.
The World Bank representative urged all stakeholders to use the conference as a “vital step” to align on a concise action list for the next 12 months. The explicit goal is to point to tangible strides and reforms at next year’s gathering to boost MSMEs and ultimately place “Made-in-Liberia” products firmly on the global map. In a concluding message to Liberia’s entrepreneurs, the Bank emphasized the importance of their determination, stating: “World-class enterprises are Liberia’s future… Keep daring, keep learning, and keep focused.” The success of J-Palm CEO Mahmoud Johnson, the keynote speaker, was highlighted as a powerful example of what is possible in Liberia’s entrepreneurial landscape
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