Cabinet Reviews State of National Economy; Amid Finalization of Due Diligence –Approves Arcelor Mittal Gangra Project.

Wednesday, 19th October 2016
President Sirleaf chairs Cabinet.
President Sirleaf chairs Cabinet.
Photo Credit: Executive Mansion

Monrovia, Liberia: Cabinet has meticulously reviewed the state of national economy, received updates on economic performance, the need for diversification and amid the finalization of relevant due diligence approved Arcelor Mittal new project, which is in line with the existing Mineral Development Agreement (MDA) and License issued the company.

According to an Executive Mansion release, Cabinet reviewed the current economic performance and challenges, strategies moving forward, updates on FY16/17 budget execution as well as budget option for fiscal year 17/18.

A careful review in terms of challenges underscored the impact of the Ebola Virus Disease, price decline for key exports including iron ore, rubber and gold coupled with UNMIL peculiar drawdown within the context of Liberia.

On the way forward in light of economic diversification, Cabinet advanced the compelling need to operationalize support value addition in agriculture financing, public goods and market access; critical support towards production and milling of local market access. Regarding support to manufacturing section Cabinet stressed the need to prioritize the expansion cum distribution of electricity; explore creative financing for MSMEs and attract more foreign direct investment in the manufacturing sector.

Cabinet also received updates on revenue performance FY 16/17 from the perspective of developments in the macro economy, decline in trade volumes, exchange rate impact and currency effects, and impact of UNMIL drawdown; a comparative analysis of domestic revenue performance, gross revenue versus net revenue and external resource mobilization and mandated innovative ways to reverse the trend.

Meanwhile, Cabinet has approved amid the requisite due diligence the Arcelor Mittal Gangra Project and mandated that issues pertaining to Arcelor Mittal studies and approval, engineering details, environmental baseline/permit, community awareness, resettlement, temporary permits, road construction, mine development temporary access road, temporary hauling and Gangra overall operations are scrupulously tackled in the best interest of all parties.