• IMF approves $266M RSF financing for Liberia climate resilience

• Additional $26M disbursed under ECF, total near $106M

• Growth solid but risks persist from oil prices and declining aid

The International Monetary Fund approved $266 million in new financing for Liberia under the Resilience and Sustainability Facility (RSF). The 21-month arrangement is designed to support efforts to adapt to climate change, pandemic preparedness and economic resilience.

The facility will support "the implementation of the authorities’ climate adaptation efforts and enhance pandemic preparedness. It will leverage synergies with other development partners and help catalyze external financing," IMF Deputy Managing Director Bo Li said.

Liberia is among the countries most exposed to the effects of climate change, including rising sea levels, flooding, erratic rainfall and agricultural disruption. Without corrective action, the World Bank has warned this could lead to "a 15% contraction of Liberia's economy and push 1.3 million people into poverty by 2050."

The Liberian government, with support from partners including the World Bank, is implementing several programs focused on resilient infrastructure, sustainable land management and protecting livelihoods. Targeted measures could improve agricultural productivity and strengthen the climate resilience of nearly 800,000 people, the World Bank estimates.

A growing economy, but under pressure

The IMF also completed the third review of Liberia's program under the Extended Credit Facility (ECF), immediately unlocking an additional $26.49 million. Total disbursements under that program now stand at nearly $106 million.

The institution noted that the Liberian economy grew 5.1% in 2025, driven primarily by expansion in the mining sector and the continued implementation of reforms under the national development program. The IMF highlighted the strength of macroeconomic policies, fiscal consolidation efforts and progress in reducing debt vulnerabilities.

The outlook, however, faces several risks, including rising global oil prices and declining bilateral aid. To cushion those shocks, authorities have put in place targeted temporary subsidies for public transportation and a supplementary budget aimed at preserving essential social spending without undermining fiscal discipline.

The IMF projects Liberia's growth will reach 5.4% in 2026 and gradually climb to 5.6% by 2030. Inflation is forecast to ease from 8% in 2026 to 5% in 2030.

Charlène N’dimon