The African Development Bank (AfDB) and the World Bank have emphasized the need for Liberia to strengthen its institutions, improve governance, and enhance national data to access increased concessional development financing. This call was made during a one-day high-level Country Policy and Institutional Assessment (CPIA) workshop in Monrovia, hosted by the AfDB Liberia Country Office in collaboration with the World Bank Liberia Office. The workshop brought together government officials, development partners, and technical representatives from both institutions.
The CPIA assessment process was explained as a critical instrument for measuring the quality of a country's policies and institutions in promoting economic growth and reducing poverty. The assessment forms the foundation of the AfDB's Performance-Based Allocation (PBA) system, which determines the distribution of concessional resources among eligible African countries. Liberia's performance under the assessment directly influences the volume of development financing it can access and serves as a reference for bilateral donors and international development partners.
Liberia's CPIA performance was reviewed during the workshop, with presentations highlighting improvements in economic management, particularly in monetary policy, which increased from 3.5 in 2020 to 5.0 in 2025. However, governance and institutional performance indicators remain below regional averages, requiring further reforms and sustained government attention. The World Bank's assessment placed Liberia's overall CPIA score at 3.0, with Public Sector Management and Governance recording the weakest performance at 2.6.
The financial implications of Liberia's ratings were emphasized, with a 0.1-point improvement in the overall CPIA score potentially increasing the country's IDA allocation by approximately 10 to 13 percent. The workshop also highlighted developments in Liberia's Debt Sustainability Assessment (DSA), which indicated an improvement in the country's debt-carrying capacity from weak to medium. However, two consecutive positive assessments are required before the improvement can be formally confirmed.
To improve Liberia's performance, the workshop recommended the establishment of an Inter-Ministerial Committee to coordinate and lead the national CPIA process. A detailed action matrix covering each CPIA cluster, with measurable targets and assigned institutional responsibilities, was also proposed. Increased investment in institutions responsible for producing national statistics and ensuring reliable data accessibility was another major recommendation.
The CEO of the Youth Entrepreneurship Investment Bank Management Company (YEIB-MANCO), Joseph Fatorma Sando, called for the establishment of a National Data Center to strengthen Liberia's data collection, verification, and management systems. He urged the AfDB and World Bank to support the Government of Liberia in establishing a coordinated national data management system to improve the timely collection and accessibility of credible information.
The workshop's recommendations aim to enhance Liberia's institutional ratings, strengthen its eligibility for concessional financing, and ultimately increase access to development financing. The country's progress in implementing these recommendations will be crucial in determining its future development prospects. Key development partners and government institutions will need to collaborate to address the identified challenges and improve Liberia's CPIA performance.
Key points
- A 0.1-point improvement in Liberia's overall CPIA score could increase the country's IDA allocation by approximately 10 to 13 percent.
