MONROVIA – The World Bank (WB) has approved an Additional Financing to the Rural Economic Transformation Project (RETRAP-AF) to the tune of $30 million in concessional International Development Association (IDA) credit to improve productivity and market access for smallholder farmers and agri-enterprises for selected food value chains, especially for rice. This financing, which comes from the Crisis Response Window – Early Response Financing-CRW-ERF of IDA, will ensure that the Liberia Rural Economic Transformation Project (RETRAP) benefits an additional 36,000 households, thereby increasing the total number of beneficiary households by 60%, from 60,000 to 96,000. Additionally, the World Bank has approved an Additional Financing of $20 million concessional International Development Association (IDA) credit to enhance access to food for poor and food insecure households in Liberia, and improve efficiency in managing social protection programs.
“The recent global food crisis resulting from various global shocks such as the Russia-Ukraine war and climate change has underscored the need for Liberia to address the issue of food security,” said Khwima Nthara, World Bank Country Manager for Liberia. “I am glad that this additional financing will support rice production which is critical to food security in Liberia,” stated a December 22, 2022 press release from Washington.
According to the WB, this additional financing will support a supply response to the severe food crisis facing the country in line with the World Bank’s Crisis Response Framework. It will support increased agricultural productivity and development of selected value chains that are vital to food security and facilitate access to food. It will also strengthen the country’s food crisis prevention and monitoring systems and build community resilience to climate change. The original project covered 11 of Liberia’s 15 counties. With this financing, project activities will be extended to all 15 counties, thereby addressing food security issues nationwide.
“This additional financing will support expanded food production, focusing on rice but will also improve crisis monitoring, evaluation, coordination, and management. The financing will also cover other value chains such as palm oil and vegetables which are key to improved food and nutrition security – food availability and access, and also offer a high potential for income generation and poverty-reduction,” said Adetunji Oredipe and John Kobina Richardson, Co-Task Team Leaders for the project.
On building resilience to climate change, the additional financing will incorporate the use of climate-resilient seed varieties; investments in climate-resilient infrastructure and the adoption of practices that will prevent soil erosion and retain soil nutrients; improved water management; and efficient methods and technologies to manage pests and diseases.
Meanwhile, the World Bank has approved an Additional Financing of $20 million concessional International Development Association (IDA)* credit to enhance access to food for poor and food insecure households in Liberia, and improve efficiency in managing social protection programs.
This additional financing will be channeled through the existing Recovery of Economic Activity for Liberian Informal Sector Employment (REALISE) Project and comes from the Crisis Response Window – Early Response Financing-CRW-ERF of IDA. The financing helps address food insecurity in Liberia from the demand side through the provision of cash transfers to poor and food insecure households so that they can be able to afford food on the market. Additionally, the financing will contribute to improving livelihood opportunities and climate resilience through communal farming, labor subsidies, and training on sustainable agricultural practices and life skills. In supporting poor and food insecure households, the cash transfer and communal farming programs will ensure that households headed by single women, the elderly, pregnant women, women with infants, and persons with disabilities are considered during the beneficiary selection process.
“This additional financing will be critical to supporting the Government’s efforts to cushion poor and vulnerable households in Liberia from the impact of recent increases in the cost of food due to global shocks,” said Khwima Nthara, World Bank Country Manager for Liberia.
This financing will contribute to two major priorities in the Quick Action Food Security Response Plan developed by the Government of Liberia. These are protecting vulnerable people from food shortages and negative food security and nutrition impacts, and laying the foundation for medium to long-term investment to boost agriculture productivity. Liberia has recently developed significant capacity to implement social safety net programs. This will ensure a rapid roll-out of the additional financing.
“During implementation, proven methods of beneficiary selection will be used to ensure that the poorest and most vulnerable households are targeted and that benefits are delivered in a timely and efficient manner,” said Mack Capehart Mulbah and Steisianasari Mileiva, Co-Task Team Leaders for the project.
The International Development Association (IDA) is the World Bank’s fund for the poorest. Established in 1960, it provides grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 76 poorest countries, 39 of which are in Africa. IDA resources help effect positive change in the lives of the 1.6 billion people living in the countries that are eligible for its assistance. Since its inception, IDA has supported development work in 113 countries. Annual commitments are constantly on the rise and have averaged $21 billion over the past three years, with about 61% going to Africa.
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