In its latest annual Liberian Economic Update, the World Bank has delivered a sobering assessment of the country’s prospects for achieving its ambitious goal of reaching middle-income status by 2030.
Released Thursday in the capital Monrovia, the report’s central finding is that Liberia is most likely to miss this target, primarily due to the persistent challenges plaguing its energy sector.
Electricity, as the report highlights, is a critical enabler of growth, productivity, and job creation – factors that are essential for Liberia’s economic transformation.
The country has committed to the Sustainable Development Goal of ensuring universal access to affordable, reliable, and modern energy by 2030.
However, the current trajectory suggests that this objective will remain elusive unless Liberia embarks on a bold reform agenda, the Bank said.
“Liberia’s energy sector is simply not keeping pace with the country’s development aspirations.
Persistent power supply deficits, operational inefficiencies, and limited private investment are all conspiring to undermine the country’s path to prosperity.”
The data paints a stark picture. While overall access to electricity has improved from less than 10% a decade ago to 30% today, this progress has been uneven. Urban areas have seen a surge in electrification, with access reaching 50%. In contrast, rural communities continue to lag, with only 8% of the population connected to the grid.
“The disparity in energy access between urban and rural areas is a major concern,” the report said
“Without addressing this imbalance, Liberia will struggle to achieve inclusive and sustainable development.”
The report identifies three key constraints holding back the energy sector. First, the lack of sufficient generation capacity, particularly during the dry season, leads to frequent blackouts and unreliable supply.
Second, the state-owned utility’s operational inefficiencies and weak financial condition limit its ability to maintain existing infrastructure, invest in new assets, and attract private capital.
Finally, weak regulatory enforcement has stifled private sector participation, further exacerbating the challenge of expanding access to reliable electricity.
“Liberia’s energy sector is caught in a vicious cycle,” the Bank noted.
“Without adequate investment and operational improvements, the utility will continue to underperform, discouraging private players from entering the market. This, in turn, perpetuates the cycle of power shortages and unreliable service.”
The country’s aspirations of reaching middle-income status by the end of the decade are now under serious threat, with the energy sector emerging as a significant bottleneck.
