Liberia: Rep. Koinah Pushes Microcredit Scheme for Rail-Affected Communities as AML Fund Agreement Nears Completion

The proposed arrangement would see the district’s allocation directed toward a microcredit program designed to provide residents with access to loans at a minimum interest rate of five percent. The initiative is intended to support small businesses, strengthen household incomes and create additional economic opportunities for people living along the railway corridor

GBARNGA, Bong County – Representative Prince K. Koinah of Bong County District One is pushing for a community-based microcredit scheme to improve the economic conditions of residents affected by ArcelorMittal Liberia’s operations, following a day-long consultation with traditional leaders, commissioners and other stakeholders.

---

***By Selma Lomax, [email protected] ***

---

The meeting, held in collaboration with Mac-Africa, an ArcelorMittal contracting partner, focused on reaching a common understanding regarding the utilization and disbursement of the 20 percent social development fund allocated to Electoral District One from benefits accruing to Bong County.

At the conclusion of the discussions, stakeholders reportedly reached approximately 90 percent agreement on the proposed framework, marking significant progress toward the eventual disbursement of funds intended to benefit communities affected by the company’s operations.

The proposed arrangement would see the district’s allocation directed toward a microcredit program designed to provide residents with access to loans at a minimum interest rate of five percent. The initiative is intended to support small businesses, strengthen household incomes and create additional economic opportunities for people living along the railway corridor.

Under the existing social responsibility arrangement, Bong County receives US$500,000 annually from ArcelorMittal Liberia, with Electoral District One entitled to 20 percent of the amount, equivalent to US$100,000.

The allocation is part of the broader benefits intended to support communities affected by the company’s mining, transportation and related activities.

For years, the district’s share of the social development funds has largely been directed toward infrastructure projects, including the construction and improvement of health facilities in several communities.

Among the projects supported through previous allocations are the Zowienta Clinic in Kpaai District, the Boegbon Clinic in Tukpablee, the Rock Crusher Maternal Waiting Home in Kokoyah and the Gbar’s Town Clinic in Boinsein.

While acknowledging the importance of these investments, stakeholders at the latest meeting agreed that the district should broaden its development priorities by incorporating direct economic empowerment initiatives.

The proposed microcredit arrangement is expected to provide an alternative avenue through which residents can access financial assistance to establish, expand or sustain small businesses.

Representative Koinah said the decision reflects the need to ensure that the benefits associated with ArcelorMittal’s operations translate into practical improvements in the daily lives of affected residents.

He noted that while infrastructure development remains important, communities must also be empowered economically to take advantage of opportunities and improve their living conditions. According to the lawmaker, the proposed initiative is intended to move beyond traditional development interventions and provide residents with an opportunity to participate more directly in economic activities.

“We want our people to see the direct benefits of these social development funds in their everyday lives. Infrastructure is important, and we appreciate the projects that have already been undertaken, but development must also mean putting money into the hands of our people through a responsible system that allows them to improve their businesses and support their families,” Rep. Koinah said.

He further explained that the decision to establish a microcredit scheme represents an important shift in how the district intends to utilize benefits accruing from its association with ArcelorMittal’s operations. He said the objective is to ensure that residents, particularly those whose communities have been affected by the company’s operations, experience tangible economic benefits from the social development funds.

“We want these funds to make a meaningful difference in the lives of our people. For too long, development discussions have largely focused on physical infrastructure, but we must also begin looking at how our people can improve their businesses, support their families and become economically independent. This microcredit initiative is one way of giving our people an opportunity to improve their livelihoods,” Rep. Koinah said.

He emphasized that the proposed microcredit scheme must be established through an accountable process that guarantees fairness in identifying beneficiaries and managing repayments. The lawmaker also cautioned against rushing the disbursement process without first putting in place the necessary institutional and financial arrangements.

Under the framework discussed during the meeting, the funds would be managed by a committee comprising local stakeholders, with oversight provided by a supervisory board.

The proposed board would include Representative Koinah, the statutory superintendent and a representative of the County Superintendent’s Office. The arrangement is intended to provide an additional layer of supervision over the management and utilization of the funds while ensuring that the interests of affected communities remain central to the process.

The involvement of traditional leaders, elders and commissioners is also expected to strengthen community participation and ensure that the program reflects the priorities of residents.

Rep. Koinah said the establishment of clear management structures is necessary to protect the funds from misuse and build public confidence in the initiative. He stressed that the district must create a dedicated bank account through which the funds can be received, managed and disbursed, adding that all transactions must follow established financial procedures.

“Our responsibility is to make sure that this money is protected and used for the benefit of the people. We cannot allow a process of this importance to be handled casually. We must establish the proper structures, open the district’s account and ensure that every stakeholder understands the mechanisms before the money is released,” he said.

The lawmaker further emphasized that the involvement of traditional leaders, commissioners and other community stakeholders in the management process is intended to ensure that decisions reflect the collective interests of residents rather than the preferences of individuals.

“Our intention is not simply to disburse money and leave people to figure things out. We want a system that is properly structured, transparent and accountable to the communities. Every dollar must serve the purpose for which it is intended. That is why we are insisting on the establishment of the necessary financial and management structures before the disbursement takes place,” he added.

Mac-Africa, which participated in the discussions, informed stakeholders that the funds were available and awaiting the completion of the remaining consultation and administrative processes.

The company indicated that a larger concluding meeting would be convened in the coming days to finalize outstanding issues and pave the way for disbursement.

The latest meeting is therefore being viewed as an important step toward resolving questions surrounding the utilization of the district’s allocation and establishing a framework acceptable to the different community representatives.

Although the agreement has reportedly reached 90 percent, the remaining issues are expected to be addressed during the proposed final engagement. The outcome of that meeting will be critical in determining the specific mechanisms through which residents will access the microcredit facility, including eligibility requirements, loan administration, repayment arrangements and the responsibilities of the proposed management committee.

The five-percent minimum interest rate is expected to make the facility more accessible than many conventional lending arrangements, particularly for small-scale entrepreneurs and residents who may have limited access to formal banking services.

However, the effectiveness of the initiative will depend on how the proposed management structure is implemented, the transparency of beneficiary selection and the sustainability of the repayment system.

For communities located along the railway corridor, the proposed arrangement could provide an opportunity to access financial resources that may otherwise be difficult to obtain.

Small traders, farmers, transport operators and other local entrepreneurs could potentially benefit from improved access to capital, provided that the final framework accommodates their economic circumstances.

Beyond the proposed microcredit scheme, the discussions also raise broader questions about how social development funds should be utilized to ensure that communities affected by large-scale industrial operations receive meaningful and lasting benefits.

For Electoral District One, the shift toward economic empowerment represents an attempt to complement existing infrastructure investments with initiatives that could directly support household livelihoods. Rep. Koinah has expressed optimism about the progress made during the consultations, urging residents to remain patient while the remaining procedures are completed.

He maintained that the disbursement would only proceed after the agreed mechanisms and administrative requirements had been fulfilled.The lawmaker also called on community leaders and residents to remain engaged in the process, emphasizing that the success of the proposed initiative would depend on collective responsibility and cooperation.

With stakeholders reportedly reaching 90 percent consensus and Mac-Africa confirming the availability of the funds, attention is now turning toward the concluding meeting expected to settle the remaining issues. The proposed US$100,000 allocation, once released and properly managed, could provide Electoral District One with an opportunity to expand its development agenda beyond physical infrastructure and place greater emphasis on the economic welfare of residents.

For now, however, the proposed microcredit program remains subject to the completion of the consultation process, the establishment of the district’s financial arrangements and the final approval of the stakeholders involved.