• The Senate has approved a bill to create the Agriculture Enterprise Development Bank

• Farmers received only 4.1% of bank credit in 2024, according to the central bank

• Food imports reached nearly $396.4 million last year

Liberia’s Senate on December 18, 2025, passed a bill to establish the Agriculture Enterprise Development Bank of Liberia, a state-owned financial institution dedicated to financing the agricultural sector. According to local media outlet The Liberian Investigator, the bill must still be approved by the House of Representatives and signed by the president before it can take effect.

Senator Joseph Jallah said the planned bank is intended to address a structural challenge facing the sector, namely limited access to credit for farmers and agro-industrial businesses within the traditional banking system. In its 2024 annual report, the Central Bank of Liberia said agriculture accounted for just 4.1% of total bank lending that year.

As in much of sub-Saharan Africa, access to agricultural finance remains a persistent issue. Climate risks, the lack of acceptable collateral, and limited banking services in rural areas continue to discourage commercial banks from extending credit to farmers.

Through the Agriculture Enterprise Development Bank of Liberia, the authorities aim to broaden access to financing for thousands of smallholders and rural enterprises through a gradual rollout and partnerships with government agencies, financial institutions, farmer organizations, and development partners.

The new institution is expected to offer financial products tailored to the needs of farmers, along with complementary services such as technical assistance, extension support, access to insurance, and facilitation of market access for the sale of agricultural output.

According to Senator Jallah, the initiative reflects a national commitment to place agriculture, the country’s largest employer and the backbone of rural livelihoods, at the center of Liberia’s development agenda.

For Monrovia, the broader objective is to strengthen domestic agricultural production in order to gradually reduce dependence on food imports and the associated costs. In 2024, Liberia imported nearly $396.4 million worth of food products, according to central bank data, with major spending items including rice, wheat and related products, and edible oils.

Future developments will determine whether the launch of the new bank can significantly improve access to agricultural financing in the country.

Stéphanas Assocle