By Aisha Eyadema
MONROVIA – Liberia, the oldest republic in Africa, is undergoing a critical economic transition. Following the inauguration of President Joseph Nyuma Boakai in January 2024, the nation has shifted its focus from political stabilization toward aggressive economic recovery and diversification. For international investors, the current environment presents a unique blend of stabilization successes and high-potential, yet structurally challenging, opportunities. The key takeaway is this: the signal of political will is strong, but the path requires patience and strategic entry.
President Boakai’s economic agenda, encapsulated by the ARREST Agenda for Inclusive Development** (focusing on Agriculture, Roads, Rule of Law, Education, Sanitation, and Tourism), shows early signs of success in restoring macroeconomic stability, despite inheriting a challenging fiscal environment.
The administration’s commitment to fiscal discipline has been immediately visible. GDP growth is projected at around 5.1% for 2024, reflecting a rebound and expansion, primarily driven by the mining, agriculture, and services sectors. Crucially, inflation has dropped significantly, reaching an estimated 7.7% by year-end 2024, down from previous double-digit figures. This reduction is attributed to tighter monetary policy, a stabilized exchange rate, and timely interventions to lower commodity prices. Furthermore, the administration announced a record-breaking domestic revenue collection of approximately $695.3 million in 2024. This growth, alongside the push for tax modernization, is essential for reducing Liberia’s historical dependency on external aid.
However, the reality on the ground remains defined by a twin challenge: the structural reliance on a few primary commodity exports (iron ore, gold, rubber, timber) and a persistent job crisis, with vulnerable employment affecting over 75% of the workforce. The ARREST agenda, therefore, is not just about growth; it is about economic diversification and creating higher-quality, sustainable jobs to address this structural deficit.
The Boakai administration is actively negotiating new investments and has prioritized key sectors that hold the highest potential for scale and national impact.
- Mining and Critical Minerals (The New Frontier)
While iron ore, gold, and diamonds remain staples, the biggest new investment hook is in Critical Minerals. Recent surveys confirm the presence of valuable minerals like lithium, cobalt, copper, and nickel, which are essential components for the global energy transition, particularly for EV batteries and renewable energy technologies. The appointment of new leadership in the Ministry of Mines and Energy signals serious intent to develop this sector strategically. Investors should target exploration and extraction projects focused on these high-demand strategic minerals, though they must pay close attention to the finalization of concession agreements and government transparency in geological data, which remain crucial prerequisites.
- Agriculture and Agribusiness (The ARREST Anchor)
This sector is the engine of the ARREST agenda, designed to improve food security and stimulate mass employment. Liberia possesses vast tracts of fertile land, but the opportunity lies not just in farming, but in value addition and processing. Instead of exporting raw rubber or cocoa, international capital is sought for agro-processing facilities—converting raw rubber into finished goods (like tires or industrial mats), processing cocoa and coffee beans locally, and producing value-added palm oil products. Modernizing farming for staples like rice is also a priority for investors who can bring scale and technology to improve national food self-sufficiency.
- Infrastructure and Energy (The Enabler)
Inadequate roads and unreliable power are the main constraints on Liberia’s development. Consequently, this sector offers high-impact investment opportunities. The focus is on public-private partnerships (PPPs) for major projects like road rehabilitation (which dramatically lowers the cost of moving goods) and the modernization of key ports, such as Monrovia’s Freeport. In energy, there is massive potential for renewable sources, particularly solar energy (a large-scale 20-megawatt plant is underway) and hydro power. Decentralized and off-grid solar solutions for rural areas offer immediate, high-impact investment potential to unlock the productivity of local communities. Opportunities for the Ordinary Liberian Entrepreneur
The growth in the large-scale sectors must cascade down to the informal economy, where the majority of Liberians earn their living. For the ordinary person on the street, the focus must be on leveraging existing demand and filling gaps in the local value chain, often through low-capital, high-impact services.
One highly accessible area is Value-Added Food Processing. Small-scale production of local necessities—such as processed rice, flour alternatives, fruit jams, ground spices, or dried fish and meat—is a competitive endeavor. By substituting often expensive imports with quality local goods, ordinary entrepreneurs can create immediate market linkages with local farmers and satisfy domestic demand.
Equally important are opportunities in Skills Development. As the economy strives to formalize, the need for skilled labor grows exponentially. Setting up small centers for computer literacy, basic coding, financial literacy, or technical trades (like certified plumbing or electrical work) addresses a critical gap in human capital and positions individuals for better formal employment.
Finally, the Logistics and Transport sector offers immediate income, with the reliance on motorcycle taxis (kekehs) and shuttle services bridging the gaps in public transport. As infrastructure slowly improves, local, efficient transport remains in vital demand for connecting communities and getting local produce to market quickly, forming the literal arteries of the informal economy.
Liberia under President Boakai is consciously attempting to break the cycle of commodity dependence and post-conflict fragility. The ARREST Agenda provides a clear roadmap, prioritizing stability and productive sectors.
For the international investor, Liberia is a long-term play, offering high returns in natural resources and infrastructure but requiring patience and strategic foresight regarding bureaucratic and governance reforms. Investors must look past the historical challenges and focus on the strategic mineral potential and the government’s visible commitment to fiscal discipline.
For the local entrepreneur the opportunity lies in embracing value addition and addressing the profound, unmet needs in local consumption and basic services. The Liberian economy is showing resilience, and the moment is ripe to build sustainable businesses from the ground up.
