AfDB Approves $400,000 Grant for Liberia Pension Sector Reform

The Liberia Pension Sector Intervention Project seeks to address this gap by reforming the pension system and developing a national strategy.

The African Development Bank Group has approved a $400,000 grant to support the Liberia Pension Sector Intervention Project, aimed at expanding pension coverage in the country. The funding comes from the Capital Markets Development Trust Fund (CMDTF), a multi-donor fund managed by the African Development Bank, supported by donors such as the Netherlands and Luxembourg.

Currently, Liberia's National Social Security and Welfare Corporation (NASSCORP) covers mostly formal public service employees, leaving a gap for private sector and informal workers. The Liberia Pension Sector Intervention Project seeks to address this gap by reforming the pension system and developing a national strategy. It also focuses on capacity building for both public and potential private pension operators.

The Central Bank of Liberia (CBL), which oversees the country's financial sector, will implement the project. The initiative is expected to broaden pension coverage, mobilize additional savings for investment, and enhance the domestic capital market by supporting the emergence of institutional investors.

Hon. Henry F. Saamoi, Acting Executive Governor of the CBL, expressed gratitude to the African Development Bank, emphasizing the importance of the reforms in readying Liberia for capital market development. Ahmed Attout, Director for Financial Sector Development at the African Development Bank, also noted that the project aligns with the Bank’s mission of fostering efficient capital markets that mobilize domestic savings for economic growth.