UNDP Liberia

The aim of the “Launch of an Inclusive Financial Sector in Liberia” is to contribute to the achievement of the Millennium Development Goals by cutting absolute poverty by half by 2015. This will be achieved by increasing sustainable access to financial services for poor and low-income people in Liberia. The financial empowerment to improve livelihoods can be seen as a major step towards the achievement of the goals set by the Results-Focused Transitional Framework (RFTF).

The initiative is two-tiered, with the provision of small loans on the grassroots level and the revision of the current rules and regulations governing the banking sector on the policy level.

On 10 March 2005, the microfinance project document was officially signed by the partners, and in May of the same year UNDP signed an agreement with the Dutch NGO, Cordaid. Included in the microfinance initiative is the establishment of the National Micro-finance Task Force (NMTF), comprising of the government, banking institutions, microfinance institutions, credit unions and international organizations. Its membership includes the Ministry of Planning and Economic Affairs (MPEA), Ministry of Finance (MF), the Central Bank of Liberia (CBL), the Liberian Bank of Development and Investment (LBDI), the Liberia Credit Union National Association (LCUNA), the Local Enterprise Assistance Programme (LEAP) and UNDP Liberia/UNCDF.

To promote national ownership of the microfinance scheme and ensure its sustainability, eight Liberians representing the members of the NMTF underwent indepth training on microfinance at the International Training Center of the International Labor Organization in Turin, Italy (25 July – 12 August 2005).

GLOBAL MICRO-ENTREPENEURIAL AWARDS (GMA) Programme
The year 2005 has been declared as the International Year of Microcredit by the Secretary-General of the United Nations. In commemoration of this, Liberian entrepreneurs were given the opportunity to partake in the Global Microfinance Awards (GMA).

Over 30 countries participated in the GMA, which was first held in 2003. The aim of the award programme is to raise awareness of the role that microcredit and local entrepreneurship can play in poverty reduction. It has been particularly successful in transitional economies.

Liberia’s participation in the GMA was coordinated jointly by UNDP and potential micro-finance institutions, supported by local university students from AME, UMU and the University of Liberia.

Over 100 entrepreneurs, including micro-entrepreneurs from the LEAP, LCUNA, ARC/Liberty Finance, Sustainable Development Promoters and the Women and Children’s Development Association of Liberia participated in the main category “Best entrepreneur in Liberia” and the two sub-categories “Micro-entrepreneurs who have made large contributions to their local communities” and “Returnee micro-entrepreneurs who are restarting businesses in Liberia”.

The Grand Prize Winner, Korpo Kollie from LEAP was due to participate in the International Forum on Building Inclusive Financial Sector in New York, funded by Cordaid and UNCDF. Amongst other things, the workshop brought together donors and entrepreneurs, thus creating greater awareness of the possibilities that microcredit can help realize.

PROGRAMME ACHIEVEMENTS:
• The NMTF has been established and the membership determined.
• 8 Liberians from UNDP, Central Bank of Liberia (CBL), Ministry of Planning and Economic Affairs (MPEA), Ministry of Finance (MF), Liberian Bank of Development and Investment (LBDI) and Liberia Credit Union National Association (LCUNA) have been sent on a training course on microfinance in Turin, Italy.
• The Global Microcredit Awards were held for the first time in Liberia.