ONE OF THE focuses of President George Manneh Weah’s administration is to seek to expand Liberia’s global economic leadership and presence in order to foster regional cooperation, economic development and integration. The administration has concretize this priority by taking the nation into the Asian Infrastructure Investment Bank (AIIB) as its 84th member. This followed the Liberia’s membership approval at the AIIB’s Fifth Annual Meeting, held in Beijing, China, on July 28, 2020, the nation having completed the terms and conditions of membership set out in Resolution 96 of the AIIB’s Board of Governors on January 4, 2021
LIBERIA JOINING THE AIIB presents an opportunity for nation to continue to expand its cooperation with the community of Development Finance institutions (DFIs) around the world. Liberia as a member is expected to benefit from projects financing that has a value of more than 20 to 30 times the total value of the investment the country makes in the bank, as the AIIB could hold equity share in a Public Private Partnership (PPP) venture in road or energy development or in projects of similar nature. Incorporation will also afford the nation to leverage its membership within the bank to attract Asian investors and development financing into the country. The accession is subject to the ratification of the National Legislature.
ONE OF THE anticipations of the new economic development horizon is that the nation is looking forward to working with the bank to explore opportunities for resolving major development and infrastructure challenges confronting it: large road and electricity infrastructure deficits, climate change and challenges to perfecting digital economic frontier.
FURTHER, THE AIIB is also expected to partner with the MDBs to develop regional projects in the Mano River Union region. Liberia is presently exploring possibilities for regional projects with Guinea, Sierra Leone or the Ivory Coast.
AIIB’S SOVEREIGN LOAN program, like those of other MDBs, is tailored to developing countries like Liberia which cannot afford borrowing from the international market at higher commercial non-concessionary lending rates. Loan maturity runs from 20 to 35 years.