Liberia: IFC, CBL Engage Stakeholders on Disseminating Digital Credit Guidelines

(From left) Swedish Embassy Political Officer Karin K. Blomqvist; World Bank Country Rep. Khwima Nthara, CBL Executive Governor J. Aloysius Tarlue and Madam Alexandra Celestin, Resident Representative of the International Finance Corporation as well as a representative from the Swedish embassy in Monrovia.

The International Finance Corporation (IFC), in collaboration with the Central Bank of Liberia (CBL) on September 21, held a one-day stakeholders’ meeting on the dissemination of digital credit guidelines and potential opportunities in the financial sector of Liberia.

The workshop brought together representatives from commercial banks, microfinance institutions, and mobile money service providers, and is intended to raise awareness about the use and application of these guidelines. The platform also provides access to finance for households and micro, small and medium enterprises (MSMEs). 

While it makes lending more inclusive for underserved or unserved households and firms, it also brings forth challenges that need to be addressed by policymakers and regulators to guarantee well-functioning credit markets and broader financial systems that foster sustainable economic development.

Alexandra Celestin, Resident Representative of the IFC, said the workshop on the credit guidelines initiative will increase access to finance for Liberian businesses.

“The digital credit facility will provide alternative sources to access finance, in addition to loans provided to households and businesses by commercial banks and micro-finance institutions,” Celestin added. 

She claims that the platform will improve Liberia’s business climate, particularly in agriculture and other private sector investments. Celestin urged the participants to engage in the discussion and take the opportunity as stakeholders to get a better understanding of these guidelines, learn from the experiences and lessons from other markets, and explore new market opportunities.

She further said that the development of the digital credit guidelines, which were approved in March 2022, is part of the broader ongoing technical assistance and advisory program to help support the development of the private sector in Liberia, phase two, which is funded by the Swedish International Development Agency (SIDA).

Celestin said in addition to access to digital financial services, it also includes several centers, namely: the development of agriculture value chains, collateral registry, trade facilitation, and business climate reform.

She disclosed that the first phase facilitated the revision of commercial courts — the establishment of a specialist commercial court to expedite the resolution of commercial cases and provide a platform for private and public dialogue to improve the investment climate in Liberia.

Celestin said over the years, the IFC has provided hundreds of millions in investment and technical advisory support in Liberia across several sectors, from agriculture and mining to the financial sector. She, however, mentioned that the IFC has been working with the CBL and other stakeholders to develop and implement reforms that will improve access to finance for micro, small, and medium enterprises (MSMEs).

Also speaking, the Central Bank of Liberia’s Executive Governor, J. Aloysius Tarlue, underscored the importance of the digital credit facility for Liberian businesses.

“Creating access to finance has always been a key priority of the Liberian government, a commitment the CBL holds so highly,” Tarlue said.

He wants Liberian business women to take advantage of digital credit opportunities made available through the formal financial sector to expand their enterprises.

For his part, World Bank Liberia Country Manager, Khwima Nthara, said, “Digital credit has improved the lives of ordinary people, and expressed the optimism that Liberians will reap the dividends of such a facility."

Nthara further recommits the World Bank’s commitment to working with the Central Bank to ensure that ordinary Liberians and local businesses have access to finance.

He also called on financial institutions to embrace the new platform to enhance their operations.

As development partners, I’d like to say that we’re committed to assisting and continuing to build on what has been established as a foundation to make this a reality and ensure that we’re helping to reduce poverty and promote shared prosperity in Liberia,” Nthara said.

He expressed the hope that the credit guidelines platform would see a transformation in the financial sector of Liberia. The Political Officer of the Swedish Embassy, Karin K. Blomqvist, said the Swedish Embassy is a longstanding partnership with the IFC in supporting the business climate reforms and private sector development in Liberia.

She said access to digital credit and access to finance, particularly for small businesses, women, and youth is crucial to poverty reduction and economic development in Liberia.