Housing Finance in Liberia

Overview

This profile is also available in French here.

To download a pdf version of a full 2021 Liberia country profile, click here.

Following 14 years of civil war, Liberia has had 15 years of stable democracy since 2006. Because of the destruction of urban infrastructure during the civil war, service provision in urban Liberia continues to be a challenge. The total population of Liberia is currently 5 181 299, with 52.6% of the population urbanised.  Moreover, 70% of the urban population live in slums with limited services: 17% of the population have access to sanitation and 27% have access to piped water. The development of Liberia is based on the Pro-Poor Agenda for Prosperity and Development (PAPD), the second of a five-year (2018-2023) National Development Plan which aims to meet the basic needs of Liberians and improve income security and access to basic services. To tackle Liberia’s affordable housing needs, UN-Habitat projects that 512 000 new dwellings are required by 2030.

As the PAPD indicates, the Human Development Index of Liberia climbed by 10.6% between 2000 and 2015, and the Gross National Income (GNI) per capita also increased. However, Liberia is still one of the most unequal countries in Africa. The PAPD aims to affect Liberia’s housing sector through increased infrastructure development, the distribution of wealth, and job creation, and targeting annual real GDP growth increasing from 3.0% in 2018 to 5.8% in 2023.

In 2021, Liberia’s economy is expected to grow by 3.6%. Inflation declined from 20.3% in December 2019 to 13.1% in December 2020. The exchange rate also improved, falling from L$199.29 (US$1) as of 1 July 2020 to L$171.28 (US$1) on 1 July 2021. The Central Bank of Liberia (CBL) has taken steps to protect the economy from the impact of COVID-19. These include a tighter monetary policy, an improved public finance management system, domestic revenue mobilisation, and the suspension of all charges on customer credit and loans. These measures achieved some price and exchange rate stability, thus preserving the purchasing power of the poor. Moreover, in December 2020, the International Monetary Fund approved a loan of L$8.37 billion (US$48.86 million). The sectors of the economy that will benefit from the loan are not specified, but this will certainly fill the fiscal financing gap created by the impact of COVID-19.

Find out more information on the housing finance sector of Liberia, including key stakeholders, important policies, and housing affordability:


Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2021 edition, which has up-to-date profiles for 54 African countries.

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