The Liberian Senate has unanimously passed legislation to establish the Agriculture Enterprise Development Bank of Liberia, a specialized lender designed to expand affordable credit access for farmers, cooperatives, agribusinesses, and agro-processors who have long struggled to secure financing.
The bill, approved Thursday, Dec. 18, now awaits approval from the House of Representatives and the president before becoming law.
Sponsored by Lofa County Senator Joseph Jallah, the legislation follows recommendations from a joint Senate committee on Banking, Agriculture, and Judiciary matters. Sen. Jallah said the initiative originated from the Ministry of Agriculture and signals a strategic move toward agriculture-led economic growth, highlighting the sector’s role as a backbone of rural livelihoods.
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For decades, smallholder farmers and rural businesses have faced challenges accessing affordable finance due to long production cycles, seasonal incomes, limited collateral, and climate risks.
The new bank aims to address these barriers with loan products tailored to agricultural cycles, technical support, insurance facilitation, and market linkages to help farms and agribusinesses grow sustainably.
The law also incorporates strict governance and accountability measures, including a professional board of directors, oversight by the Central Bank of Liberia, fiscal supervision by the Ministry of Finance and Development Planning, and mandatory public reporting and audits.
These safeguards are intended to ensure transparency, protect public resources, and deliver tangible development outcomes.
Lawmakers say the bank could boost productivity, strengthen food security, create jobs especially for women and youth and increase household incomes through phased implementation and partnerships with government agencies, financial institutions, and farmer groups. Sen. Jallah described the bill’s passage as just the beginning, emphasizing that success will depend on disciplined implementation, strong partnerships, and ongoing public accountability
