Power for Liberia: KfW supports development of a modern energy supply

On behalf of the German Ministry for Economic Cooperation and Development (BMZ), KfW signed a grant in the amount of EUR 15 million for electricity grid connections in Liberia's capital of Monrovia at a ceremony attended by the Liberian president and Nobel Peace Prize winner, Ellen Johnson Sirleaf. Up to 80,000 residents will be supplied with an electricity connection.

The signature is the third component in a cost-effective and environmentally friendly approach designed to develop a modern and reliable energy supply and the necessary infrastructure. As its largest international donor, KfW has played a key role in the Liberian energy sector since 2012. Together with other international financial donors, it provided funding of EUR 55 million for the Mount Coffee hydropower plant (88 MW) and EUR 59 million for five substations along the 1,360 km long power transmission line between Liberia, Côte d'Ivoire, Sierra Leone and Guinea.

"Establishing a modern energy infrastructure specifically addresses one of the greatest obstacles to Liberia's economic development. In view of the very low rate of electrification of only 3% which poses an enormous challenge, the integrated approach which extends from power generation to electricity connection is a necessary and very successful combination of different investments," said Dr Norbert Kloppenburg, Member of the KfW Executive Board.

The electricity supply system was completely destroyed during Liberia's civil war. The country still reported significant electricity losses as recently as 2016. Electricity users suffer from high tariffs that are among the highest in Sub-Saharan Africa. Thanks to the lower costs of power generation, people can now benefit from lower prices and a more reliable energy supply.