Alex Yomah
The World Bank yesterday launched the fourth edition of its annual Liberia Economic Update, under the theme “Getting Rice Right for Productivity and Poverty Alleviation.”
This year’s edition of Liberia Economic Update endeavors to shed light on the rice economy in Liberia, considering the demand, supply, and price dynamics of the commodity, and the implications for productivity and poverty alleviation.
It delves into factors constraining productivity in agriculture, broadly, and the rice sector, and offers a broad direction for policies.
According to acting Manager, Mack Capehart Mulbah, growth in the agricultural sector accelerated to 5.9 percent in 2022 from 3.3 percent in 2021 while increased crop production, especially rice and cassava, produced primarily for domestic consumption, was the main driver of growth in the agriculture sector.
Liberia’s economy expanded by 4.8 percent in 2022, despite global headwinds from the war in Ukraine, high global inflation, and depressed demand in advanced economies and that, that expansion was driven by gold production and a relatively good agricultural harvest.
Growth in services slowed to 2.8 percent from 3.0 percent in 2021, reflecting a slowdown in trade and transport services and the hospitality industry.
Speaking at Sinkor Palace yesterday morning, the acting manager said, “Despite the rebound in growth led by mining and a relatively good agricultural harvest during the year, food insecurity remains a major challenge for Liberia, with more than four-fifths of the population facing moderate or severe food insecurity,”
“The strong preference for rice among Liberians makes it integral to the country’s food security, poverty alleviation, and efforts to address vulnerabilities,” he added.
The supply, demand, and price dynamics of rice are shaping food insecurity and poverty in Liberia.
Rice makes up over 20 percent of total food consumption, accounts for nearly half of the calorie intake of adults, and accounts for about 15 percent of the overall spending of an average household in the country.
Demographic trends and a strong preference for the commodity are the main drivers of demand.
Yet Liberia produces only a third of its rice needs due to several constraints, including limited access to technology, inefficient farming practices, low public and private investments, and a fragmented value chain, among other factors that have kept productivity low.
“Amid low production and high demand, the increase in imported rice prices continues to fuel food insecurity, poverty, and vulnerabilities in Liberia,” said the Liberia Country Economist and main author of the report, Gweh Gaye Tarwo.
“Domestic rice production would need to triple to satisfy local demand, but increasing production would require significant investments in the rice sector as well as policy actions,” he emphasized.
Stakeholders’ coordination and engagement on the operationalization of the Liberia National Rice Development Strategy and the Liberia Seed Development and Certification Agency Act of 2019 could be critical to improving the rice sector.
Registration of customary land to strengthen tenure security, improving the coverage and quality of roads, providing affordable energy, and avoiding policies that distort the rice industry, are potential interventions that are critical to improving the rice value chain.
Other interventions could include enhancing information dissemination on regional market price and adopting sectorial policies aimed at improving seed varieties, storage, processing, post-harvest management, and market access development.
Moving forward, the Deputy Minister for Budget and Development planning, Tanneh Brunson said; “It is indeed an honor for me to welcome you all to the launch of the Fourth Edition of the World Bank Liberia Economic Update.”
“Today’s launch is unique because this report is critical for lightening the country’s path to shared prosperity and poverty alleviation. We consider this event very important, considering its highlight on Liberia’s staple food, rice, and the impact it has on the Liberian economy and the people’s lives and livelihoods,” she expressed.
The government and its development partners have invested and are still investing a significant amount of resources to enhance productivity in the agricultural sector, with a focus on the value chain for rice.
Nonetheless, local rice farmers continue to be less competitive due to the stark price difference between locally grown and imported varieties of rice birthed by the many supply-side constraints faced in the rice sector and households’ preference for imported rice.
Recently, to limit the effect of rising global food prices on households, the government began to subsidize rice imports to ensure the availability and affordability of the commodity in the Liberian market.
This action amplifies the importance of rice in Liberia but also signals a call to action to enhance productivity in this sector.
Rice accounts for a significant share of households’ diets and budgets in Liberia; however, a significant share of the country’s rice needs is met through imports.
