Growth Accelerator Liberia Empowers MSMEs and Agricultural Cooperatives

Growth Accelerator Liberia Empowers MSMEs and Agricultural Cooperatives.

Liberia, with a population of approximately 5.2 million, grapples with widespread poverty, with half of its inhabitants living below the poverty line. The majority of the population, around 85%, engages in informal business activities, subsistence agriculture, fishing, and mining due to limited formal employment opportunities. Despite its high levels of entrepreneurship and a young population, only about 15% of tertiary graduates secure jobs in either formal or informal sectors.

The country’s economic growth heavily relies on the success of Micro, Small, and Medium Enterprises (MSMEs) and agricultural cooperatives. However, these entities face significant challenges in accessing financial services crucial for their expansion, technological advancement, and productivity enhancement.

In response to this gap, the Growth Accelerator Liberia Alumni & Investment Partners Cross Learning Exchange Event aims to connect MSMEs, agricultural cooperatives, and local banks to foster economic growth and sustainability.

The United Nations Development Programme (UNDP) has invested approximately US$1.5 million in the initiative, benefiting around 38 Liberian small businesses and agricultural cooperatives. The program offers a combination of co-financing grants, mentorship, and technical assistance to post-revenue businesses and cooperatives to assist them in scaling up and growing.

The Growth Accelerator Liberia recently organized a one-day Cross Learning Exchange Event, bringing together alumni and investment partners, including International Bank Liberia Limited, UBA Liberia, Ecobank Liberia, and Bloom Bank Africa-Liberia. The event emphasized the crucial role of SMEs and agricultural cooperatives in Liberia’s economic development.

Luther Jeke, CEO of iCampus Liberia, underscored the importance of SMEs and agricultural cooperatives in the country’s economic progress. He highlighted the challenges these enterprises face in accessing financial services necessary for their growth.

The event provided a platform for representatives of 25 MSMEs and agricultural cooperatives to share their experiences and challenges with commercial banks. These challenges include high-interest rates, lengthy processing times, excessive bureaucracy, collateral requirements, and limited access to external markets.

Louis Kuukpen, Resident Representative a.i. of UNDP Liberia, reiterated UNDP’s commitment to unlocking the potential of the informal sector and nurturing entrepreneurial spirit across the country. He emphasized the program’s support for impactful and innovative ventures, offering co-financing grants and rigorous business development training.

Through initiatives like the Growth Accelerator Liberia, stakeholders aim to address the financial challenges faced by MSMEs and agricultural cooperatives, ultimately contributing to Liberia’s economic growth and development.