Liberia: Government Reaffirms Commitment to Financial Inclusion at UN Women’s Multi-Stakeholder Dialogue

Ganta, Nimba County – Officials from the Ministry of Gender, Children, and Social Protection, alongside representatives from the Central Bank of Liberia (CBL), have reaffirmed the Liberian government’s commitment to supporting UN Women initiatives aimed at empowering women economically.

By Franklin Doloquee, frankline.doloquee@frontpageafricaonline.com

Assistant Minister of Gender Ophelia Kennedy and Dr. George Gould, Deputy Head of Financial Sector Development at the CBL, emphasized the critical importance of empowering women to boost Liberia’s economic and social progress. Speaking during a multi-stakeholder policy dialogue workshop organized by UN Women in Ganta, Nimba County recently, the officials outlined ongoing efforts to address financial exclusion and enhance opportunities for women in the informal sector.

Tackling Financial Exclusion

Dr. Gould noted that financial exclusion remains a significant barrier to women’s economic empowerment in Liberia, particularly among those in the informal economy. “Financial exclusion is very high in Liberia, and women face greater barriers,” he said. “This is a critical issue, and the Central Bank is working tirelessly to address this gap, ensuring that women, who make up a large part of the informal economy, have the tools they need to thrive.”

Liberia’s financial landscape is dominated by the informal sector, where many women-run businesses struggle to access basic financial services like loans, savings accounts, and credit. Dr. Gould highlighted that about 48% of Liberia’s population lacks access to formal financial services, with women disproportionately affected.

To bridge this gap, the CBL is implementing programs to transition informal savings groups, such as Village Savings and Loan Associations (VSLAs), into the formal banking system. Pilot projects in Bong and Nimba counties have already shown success, with 15 VSLA cooperatives participating.

“We’ve seen promising results from these pilots,” Dr. Gould explained. “By integrating VSLAs into the formal banking system, we’re creating opportunities for women to access more comprehensive financial services.”

Tailored Financial Products for Women

The CBL is collaborating with local banks to design financial products that meet the specific needs of women entrepreneurs. This includes loans with reduced collateral requirements and lower interest rates, as well as financial education initiatives.

“One of our goals is to encourage banks to view women-led businesses as viable investments,” Dr. Gould stated. “Using cash flow data from VSLAs, we can demonstrate the sustainability of these businesses and build trust between women entrepreneurs and financial institutions.”

Dr. Gould also stressed the importance of adopting an evidence-based approach to ensure the effectiveness of these initiatives. “We need data to evaluate the impact of these programs and ensure banks are committed to supporting women with tailored financial products,” he said.

Reducing Barriers to Economic Participation

Dr. Muriel Ametoglo, UN Women’s Regional Feminist Economist, presented research on how unpaid care work limits women’s economic opportunities in Liberia. According to her, women spend three to five hours daily on caregiving tasks, which restricts their ability to pursue formal employment or entrepreneurial activities.

“Unpaid care work is a significant barrier to women’s participation in the economy,” Dr. Ametoglo said. “By investing in child care and other care infrastructure, we can unlock women’s potential to contribute more fully to the economy.”

She pointed to examples from Côte d’Ivoire, Senegal, and Nigeria, where investments in child care infrastructure have boosted economic growth and created formal job opportunities for women.

Participants Advocate for Women’s Economic Empowerment in Liberia

The dialogue, themed “Invest in Women: Accelerating Progress for Liberia’s Future,” was held from November 12 -14, 2024, in Gompa City, Nimba County. The event brought together key stakeholders dedicated to advancing women’s economic empowerment. At the conclusion of the workshop, participants developed a manifesto serving as a roadmap to engage relevant authorities for its implementation.

Participants from the public and private sectors convened at the close of a workshop to urge policymakers to create an enabling environment for women’s economic empowerment (WEE). In a manifesto adopted, they called for improved access to education, expanded formal employment opportunities, and systemic solutions to address barriers to entrepreneurship.

Acknowledging Progress and Identifying Challenges

The participants recognized significant strides in advancing gender equality and WEE in Liberia. These efforts include initiatives like digital and financial inclusion, the “Buy from Women” platform, gender-responsive planning and budgeting, and other impactful programs led by the Government of Liberia, the Ministry of Gender, Children, and Social Protection (MGSCP), UN Women, and development partners.

However, they noted persistent challenges hindering women’s full economic participation. These include limited access to resources, discriminatory social norms, the disproportionate burden of unpaid care work, and the escalating impacts of climate change, which constrain women’s access to decent work, quality education, and healthcare. The participants emphasized that women’s economic empowerment is not just a fundamental human right but also a critical driver of sustainable development and inclusive prosperity in Liberia.

Investing in the Care Economy

The participants called on the government to address the disproportionate unpaid care work burden on women by investing in accessible, affordable childcare, eldercare, and other care services; supporting care workers with decent working conditions, fair wages, and social protection; reducing women’s time on labor-intensive unpaid care tasks by introducing labor-saving technologies and prioritizing the care economy in national development plans and budgets and creating national care roadmaps to support women’s economic participation and societal well-being.

Empowering Women in Green and Blue Economies

The participants urged the integration of gender perspectives into green and blue economy policies to position women as key beneficiaries and agents of change. Specific recommendations included the creating opportunities for women in sectors like sustainable agriculture, renewable energy, waste management, and marine conservation through training, entrepreneurship programs, and access to green finance and guaranteeing women’s leadership in climate change mitigation and adaptation initiatives while leveraging their unique knowledge and experiences.

Expanding Fiscal Space for Investments

The participants highlighted the need to expand fiscal space and prioritize gender-responsive budgeting to address gaps in funding national and sectoral plans. They called for the development of flexible loan instruments and alternative collateral options, such as vehicle inventories, to improve women’s access to credit; inclusion of financial literacy programs to support women in small business management; investing in social infrastructure to enhance women’s capabilities and empowerment and ensuring fiscal policies, particularly tax systems, do not reinforce gender biases and assessing their impact on gender equality.

The Commitment to Action

Participants pledged to establish a multi-stakeholder and multi-sectoral Women’s Economic Empowerment Committee. This committee will champion sustained advocacy, policy engagement, awareness campaigns, and capacity-building efforts. They also committed to fostering cross-sectoral collaboration among government, civil society, the private sector, and development partners to create an enabling environment for WEE.

Government Reaffirms Dedication

Assistant Minister Ophelia Kennedy reaffirmed the government’s commitment to empowering women through collaboration with UN Women and other partners. “Women’s empowerment is not just a women’s issue — it’s a national issue,” she said. “When women thrive, Liberia thrives.”

The workshop underscored financial inclusion and systemic support for women as cornerstones of Liberia’s economic growth. With the Ministry of Gender and the Central Bank of Liberia (CBL) leading efforts, supported by UN Women and other stakeholders, Liberia is steadily advancing toward building a more inclusive economy.

The post Liberia: Government Reaffirms Commitment to Financial Inclusion at UN Women’s Multi-Stakeholder Dialogue appeared first on FrontPageAfrica.