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African Development Bank Group Republic of Liberia AFRICAN DEVELOPMENT BANK GROUP REPUBLIC OF LIBERIA BANK GROUP COUNTRY STRATEGY PAPER 2019-2023 Team Members Kelvin Kanswala Banda – Principal Country Economist, COLR – Task Manager Abdul Bangura, Principal Country Programme Officer, COLR Prince Tambah- Senior Transport Engineer, COLR Alex Yeanay – Senior Fragility Expert, COLR Emmanuel Maniragaba – Energy Sector Consultant, RDGW Mohamadou Ba – Trade Finance Officer, PIFD.3 Isaac Maneni, Consultant Trade Finance – PIFD.3 Nathalie Gahunga, Chief Gender Officer, RDGW Arona Soumare, Principal Climate Change and Green Growth Specialist, PECG Philip Boahen, Chief Agriculture Policy Economist, AHAI Chukwuma Ezedinma, Principal Commodity Crop Processing Zone Expert, AHFR Jocelyne, Ade-Legre, Principal Investment Climate Regulatory Officer, PITD Ann Defraye, Nutrition Officer, AHHD Josephine Ndao, Chief Entrepreneurship and SME Development Officer, AHHD Francois Traore, Senior Civil Society Officer, AHGC Ahmed Khan, Chief Fisheries Officer, AHAI2 Soumaila Karambiri, Statistician Assistant, ECST Sandrine Ebakisse, Senior Governance Officer, ECGF Philip Doghle, Principal Financial Management Specialist, SNFI Daniel Osei-Boakye, Procurement Specialist, SNFI Mark Eghan, Senior Agriculture Economist, AHAI2 Julius Tieguhong, Chief Forestry Officer, ANRC Chimwemwe Roberta Mhango, Environmental Officer, SNSC Nusula Nassuna, Principal Legal Counsel, PGCL Jerry Ahadjie, Chief Minerals Officer, ECNR Richard Schiere, Chief Quality Assurance Officer, SNOQ Management Orison Amu, Country Manager, COLR Ferdinand Bakoup, Lead Economist, RDGW Emmanuel Pinto Moreira, Director, ECCE Serge N’guessan, Deputy Director General, RDGW Marie Laure Akin-Olugbade, Director General, RDGW Peer-Reviewers Edward Sennoga, Chief Country Economist, COET/RDGE Thierry Kangoye, Principal Strategy and Policy Officer, SNSP1 Ndoli Kalumiya, Senior Country Economist, RDGS WEST AFRICAN REGION October 2019 TABLE OF CONTENTS Map Of Liberia .......................................................................................................................... iv Executive Summary ....................................................................................................................v 1.0 Introduction .......................................................................................................................1 2.0 Country Context And Prospects........................................................................................1 2.1 Political Context And Prospects .......................................................................................1 2.2 Economic Context And Prospects ....................................................................................3 2.4 Social Context And Cross Cutting Themes ......................................................................9 2.5 Country Strategic Framework .........................................................................................10 2.6 Aid Coordination Mechanisms, Bank Positioning And Comparative Advantage ..........10 2.7 Strengths, Opportunities, Weaknesses And Challenges .................................................11 3.0 Key Findings Of Country Portfolio Performance Review ..............................................12 3.1 Active Portfolio ...............................................................................................................12 3.2 Portfolio Performance .....................................................................................................12 3.3 Portfolio Issues................................................................................................................12 4.0 Lessons Learnt ................................................................................................................13 4.1 Lessons Learnt From CSP 2013-2018 Implementation ..................................................13 4.2 Outcomes Of Stakeholder Consultation ..........................................................................14 4.3 Code Comments On CSP 2013-2018 Completion Report ..............................................14 5.0 Bank Group Strategy.......................................................................................................14 5.1 Strategy Rationale, Objective And Priority Area(S) For Bank Support .........................14 5.2 Bank Strategy And Expected Results .............................................................................16 5.3 Private Sector Window ...................................................................................................18 5.4 Indicative Lending Program ............................................................................................18 5.5 Indicative Non-Lending Program ...................................................................................19 5.6 Country Dialogue: ...........................................................................................................19 5.7 Financing The Strategy ...................................................................................................19 5.8 Implementation Arrangements, Monitoring And Evaluation .........................................19 5.9 Risks And Mitigation Measures......................................................................................20 6.0 Conclusion And Recommendations ................................................................................20 List of Annexes Annex 1: Results Measurement Framework Annex 1a: CSP Strategic Alignment Matrix Annex 1b: Performance Matrix Annex 2a Indicative Lending Program Annex 2b: Sources of Co-Financing Annex 2c: Indicative Non Lending Operations Annex 3: Active Portfolio Annex 4: Donor Mapping Annex 5: Country Policy And Institutional Assessment Rating Annex 5a: Country Policy And Institutional Assessment Ratings (2018/2014) Annex 5b: Country Policy And Institutional Assessment: Governance Rating Annex 6: Risks And Mitigation Measures Annex 7: Selected Macroeconomic Indicators Annex 8: Comparative Socio-Economic Indicators Annex 9: Progress Toward Achieving The SDGS Annex 11: Summary of Liberia Debt Sustainability Analysis Annex 12: Summary of Liberia Resilience And Fragility Assessment Annex 13: Country Fiduciary Risk Assessment ACRONYMS AND ABBREVIATIONS ADF African Development Fund ADB African Development Bank AfT Agenda for Transformation ASYCUDA Automated System for Customs Data CBL Central Bank of Liberia CLSG Cote D’Ivoire, Liberia, Sierra Leone and Guinée CODE Committee on Operations and Development Effectiveness COLR Country Office Liberia CPIP Country Portfolio Improvement Plan CPPR Country Portfolio Performance Review CSP Country Strategy Paper CT Country Team DSA Debt Sustainability Analysis ESW Economic and Sector Work EU European Union FAPA Fund for African Private Sector Assistance FDI Foreign Direct Investment F(5)YDP Five Year Development Plan GAC General Auditing Commission GAFSP Global Agriculture and Food Security Program GDP Gross Domestic Product GoL Government of Liberia HDI Human Development Index IFMIS Integrated Financial Management Information System IMF International Monetary Fund IPFMRP Integrated Public Financial Management Reform Program IPSAS International Public Sector Accounting Standards MACs Ministries, Agencies, and Commissions MDAs Ministries, Departments and Agencies M&E Monitoring and Evaluation MFDP Ministry of Finance and Development Planning MLME Ministry of Lands, Mines and Energy MRU Mano River Union MTEF Medium Term Expenditure Framework MTR Mid-Term Review PAPD Pro Poor Agenda for Prosperity and Development PAR Project Appraisal Report PBA Performance-Based Allocation PCR Project Completion Report PD Presidential Directive PEFA Public Expenditure and Financial Accountability PFM Public Financial Management PFMU Public Financial Management Unit PIU Project Implementation Unit i PMU Project Management Unit PP Problem Project PPCA Public Procurement and Concession Act PPP Potentially Problem Project RMCs Regional Member Countries SAPEC Smallholder Agric. Productivity Enhancement & Commercialization Project SCPZ Special Commodity Processing Zone SEZ Special Economic Zone SOE State Owned Enterprise SWGs Sector Working Groups TA Technical Assistance TSF Transitional State Facility TVET Technical Vocational Education and Training TYS AfDB’s Ten Year Strategy UA Unit of Account UNDP United Nations Development Program UNMIL United Nations Mission in Liberia USAID United States Agency for International Development WAMZ West African Monetary Zone WAPP West African Power Pool WASH Water, Sanitation, and Hygiene WB World Bank ii CURRENCY EQUIVALENTS September 2019 UA 1.00 = LRD 276.66 UA 1.00 = USD 1.37 USD 1.00 = LRD 202.19 WEIGHTS AND MEASURES Metric System 1 metric tonne = 2 204 pounds 1 kilogramme (kg) = 2.2 pounds 1 metre (m) = 3.281 feet 1 millimetre (mm) = 0.03937 inch 1 kilometre (km) = 0.621 miles 1 hectare (ha) = 2.471 acres GOVERNMENT FISCAL YEAR July 1- June 30 iii MAP OF LIBERIA iv EXECUTIVE SUMMARY 1) The African Development Bank Group’s Country Strategy Paper (CSP) 2019-2023 describes the main elements of the Bank’s support to Liberia aimed at addressing fragility and strengthening country resilience and to accelerate the achievement of a sustainable inclusive pro-poor economic growth in the medium term. The Bank’s Committee on Operations and Development Effectiveness (CODE) endorsed the strategic thrust of this CSP at its meeting of 3rd June 2019. 2) Liberia is the oldest African Republic founded by freed American
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