Development finance impact project – digital artifact
1. My Country of choice- Liberia
• Having been plagued with prolonged conflicts and war situations,
Liberia has key infrastructure problems around good roads, Power
supply and agriculture.
• Liberia also is unable to harness properly, their domestic resources to
boost local financing for projects and local development.
2. What is the problem or issue that you are trying to solve?
• Infrastructure development problems in the area of good road network,
constant power supply and agricultural produce to address food shortage,
enhance international marketability and boost domestic revenue
mobilization.
• Harness internal revenue mobilization through proper tax systems and
encourage public private partnership.
3. FINANCING SOLUTION
Liberia partnership with multilateral development banks (MDBs), the IFC and other
donor aids for:
• low cost loans and midterm financing for agricultural projects and infrastructure
development.
• For their assistance in designing a structure that will make the tax administration
better, and provide a favourable environment that will enhance public private
partnership and crowd in private sector investment funding.
• For assistance in capacity building in the area of financial and risk management.
4. What are the reasons that the government, official aid provider or private
sector would want to participate?
• To foster poverty reduction, sustainable growth and development.
• A stable financial mechanism that will ensure return on investment
and assured market in a conducive environment.
• A balanced economy with independent strong, happy and healthy
citizens.
5. What are the reasons that the government, official aid provider or private sector
would want to participate? CONTD.
Liberia has total dependency ratio of 82.9% with
• Youth dependency ratio: 77.4%
• Elderly dependency ratio: 5.5%
• Potential support ratio: 18.2% (2015 est.)
6. What are the reasons that the government, official aid provider or private
sector would want to participate? CONTD.
• With World Bank Group (WBG) Country Policy and Institutional
Assessment (CPIA) rate of 3.10,and African Development Bank
(AFDB) CPIA of 3.463, and a harmonized average of 3.28, Liberia is
low in development and governance on the rated scale of 1 (low) to 6
(high).
7. What are the main obstacles currently standing in the way of unlocking
financial opportunities?
• The main obstacles include:
• A nation still recovering from 14 years of fighting.
• Lack of Distrust in the system.
8. What are the main obstacles currently standing in the way of unlocking
financial opportunities? CONTD
• Over dependency.
• high mortality rate and high fertility rate.
• foreign exchange risk.
9. How would your solution overcome them? Consider the country context, if your
proposal involves a specific country.
• Putting together infrastructure project preparation facilities.
• Supporting projects different risk/return profile.
• Sourcing from private sector firms for private sponsors.
• Ensuring project bye-ins from the populace.
10. How would your solution overcome them? Consider the country context,
if your proposal involves a specific country. CONTD
• Risk litigation measures are going to be put in place that will pool
risks and provide guarantees.
• Ensure local currency financing.