In a move geared towards empowering Liberia’s youth and fostering economic growth, President H.E George M. Weah has officially submitted a Loan Agreement to the Honorable Legislature for ratification. The Agreement, titled “Loan Agreement between the Republic of Liberia and the African Development Fund (ADF) for the Program for Advancing Youth Entrepreneurship Investment (PAYED) Project A: The Liberian Youth Entrepreneurship Investment Bank,” represents a significant step in advancing the development and promotion of youth entrepreneurship in the country.
Project Overview
The primary objective of the PAYED Project is to establish a sustainable institution that provides affordable development and financing solutions to youth-led businesses in Liberia. This initiative is the first of two projects within the broader Program for Advancing Entrepreneurship Investment. President Weah, in a letter addressed to the Honorable Speaker of the House of Representatives, Dr. Bhofal Chambers, emphasized the importance of creating an optimal environment for the growth of youth entrepreneurship.
Financial Assistance and Terms of the Loan Agreement
Under the terms of the Agreement, the African Development Fund has agreed to extend a loan to Liberia in various convertible currencies, not exceeding the equivalent of Twelve Million Units of Account (UA 12,000,000) or Sixteen Million United States Dollars (US$ 16,000,000). This financial assistance is earmarked to support the financing of the PAYED Project.
The Loan Agreement outlines a duration of fifty (50) years, including a grace period of ten (10) years from the Date of the Loan Agreement. During this grace period, the Service Charge and Commitment Charge will be payable, with specific payment dates set for 15 February and 15 August each year, subject to Section 2.07 (Accelerated Repayment) of the Agreement.
President’s Confidence and Legislative Collaboration
President Weah expressed confidence that the Legislature will consider and ratify this Agreement, highlighting its potential to significantly improve the lives of Liberia’s young population. The Loan Agreement is viewed as a crucial step in advancing youth entrepreneurship and fostering economic growth in the country. The President looks forward to positive deliberations and collaboration with the Legislature to realize the outlined goals in the Program for Advancing Youth Entrepreneurship Investment.
Legislative Steps
In response to the President’s submission, the Plenary voted to forward the instrument to the committees on Ways, Means and Finance, Investment & Concession, and Judiciary. These committees will be tasked with reviewing the Agreement and reporting back to the Legislature during the 55th Legislature. This underscores the importance of thorough examination and due diligence in ensuring the soundness and appropriateness of the Loan Agreement for Liberia’s socio-economic development.
Conclusion
President Weah’s initiative to secure financial support for the PAYED Project reflects a commitment to the empowerment and advancement of Liberia’s youth. The Program for Advancing Youth Entrepreneurship Investment, with its focus on creating a conducive environment for youth-led businesses, is poised to make a lasting impact on the nation’s economic landscape. As the Legislature takes the reins in reviewing and ratifying the Loan Agreement, Liberia anticipates a future marked by increased opportunities for its young entrepreneurs and sustained economic development.