The Central Bank of Liberia (CBL) achieved a significant milestone on Thursday with the launch of the National Financial Education Program (Fin-Ed) alongside the rollout of the Pan-African Payment and Settlement System (PAPSS).
These initiatives are poised to transform Liberia’s financial landscape, aiming to enhance economic growth and integration within the African Continental Free Trade Area (AfCFTA).
The PAPSS is a pioneering payment platform that facilitates transactions within Africa using the Liberian dollar, eliminating the need for costly currency exchanges. In 2024 alone, PAPSS facilitated transactions worth L$37.7 million domestically and L$169.5 million internationally, marking a substantial step towards reinforcing Liberia’s economic connectivity with its regional partners.
During the launch event, CBL Executive Governor Henry F. Saamoi emphasized the twin pillars of financial education and digital payment systems, stating, “This event marks a significant milestone in our commitment to fostering a financially inclusive and technologically advanced economy.” He underscored the importance of equipping citizens to transact efficiently and make informed financial decisions, traits essential for national prosperity.
Governor Saamoi revealed alarming statistics indicating that 77% of surveyed respondents lack formal financial education, highlighting the critical need for initiatives like Fin-Ed. The CBL plans to partner with local organizations, including FeJA, to conduct community workshops and educational campaigns aimed at bridging this knowledge gap.
The event also showcased the rapid growth of mobile money in Liberia, reporting a surge in digital transactions to 471 billion in 2024, up from 421 billion in the previous year. “Mobile money is becoming the dominant form of electronic payment, with over 3 million active subscribers,” Governor Saamoi noted, emphasizing the relevance of this growth in the modernization of Liberia’s financial system.
A standout feature of the day’s announcements was the launch of PAPSS, which allows businesses to conduct cross-border transactions in local currencies, thus reducing dependence on U.S. dollars. Mike Ogbalu, CEO of PAPSS, praised Liberia’s involvement in this transformative initiative, underscoring the potential to enhance economic independence through seamless transactions across the continent.
Ogbalu explained that PAPSS addresses longstanding challenges in intra-Africa trade, such as high remittance costs and inefficient transaction processes. “Now, businesses can procure supplies from countries like Ghana without the hurdles of foreign exchange conversions,” he noted, reflecting on the system’s role in strengthening regional commerce.
The PAPSS initiative, endorsed by the African Union in 2019, is operational in 16 African nations with the participation of over 150 commercial banks. Notably, eight of Liberia’s nine commercial banks are already connected to the system, ensuring financial services reach even remote areas of the country.
Governor Saamoi urged local businesses to embrace financial literacy and leverage PAPSS for greater commercial opportunities.
“The CBL is committed to driving financial inclusion and economic growth in Liberia and across Africa,” he said, signaling a forward-thinking approach to elevating the local economy in the digital age.
