ABIDJAN/Ivory Coast: The African Development Bank (AfDB) has approved a $400,000 grant to support the Liberia Pension Sector Intervention Project, aimed at expanding pension coverage in the country.
The grant is funded by the Capital Markets Development Trust Fund (CMDTF), a multi-donor trust managed by the AfDB that promotes the growth of efficient and diversified capital markets across Africa. The CMDTF is financed by contributions from the Netherlands’ Ministry for Foreign Trade and Development Cooperation and Luxembourg’s Ministry of Finance.
Currently, Liberia’s National Social Security and Welfare Corporation (NASSCORP) primarily serves public sector employees in formal employment, leaving a significant coverage gap for private sector workers and those in informal businesses. The new project seeks to bridge this gap by supporting reforms in Liberia’s pension system, including a comprehensive assessment to develop a national strategy and capacity building for public and potential private pension providers.
The project is also expected to create a more favorable environment for domestic institutional investors, broadening pension coverage and helping to mobilize additional savings for investments, particularly through Liberia’s financial markets. The Central Bank of Liberia (CBL), which oversees the country’s financial sector, will implement the project.
Hon. Henry F. Saamoi, Acting Executive Governor of the CBL, welcomed the AfDB’s continued support. “This project will enhance Liberia’s readiness for capital market development by institutionalizing the investor base and improving the legal and regulatory framework of the pension sector,” he said.
Ahmed Attout, AfDB Director for Financial Sector Development, added, “We are excited to partner with the Central Bank of Liberia on this operation, which will facilitate a reformed pension system capable of mobilizing domestic savings through financial markets. This aligns with the Bank’s goal of developing well-functioning capital markets that efficiently allocate savings for economic development while reducing costs.”
The project is seen as a critical step in positioning Liberia for future capital market growth and strengthening its overall financial ecosystem.
