Rédaction Africa Links 24 with New Dawn
Published on 2024-04-08 01:21:00
Liberia, a country rich in natural resources, offers investment opportunities in various sectors such as mining, agriculture, fishing, forestry, energy, agribusiness, telecommunication, tourism, and financial services. However, despite these opportunities, Liberia has struggled to attract investment in the past seven years. Several factors contribute to this lack of investment, including the government’s tendency to delegate its responsibilities to investors, such as building infrastructure like roads, schools, hospitals, and housing units.
Investors seek to minimize risk and maximize returns, not take on the government’s responsibilities. This, coupled with factors like political stability, market potential, infrastructure, human capital, and legal protection, has deterred potential investors from Liberia. The country has valuable natural resources and raw materials that are sought after in neighboring countries, yet investment has been lacking since the tenure of former President Ellen Johnson-Sirleaf.
Companies that did invest during President Sirleaf’s administration often faced challenges that led to closure or ownership transfer. For instance, Sime Darby, BHP Billiton, Buchanan Renewables, and West African Telecom encountered difficulties in the mining and agriculture sectors. Protests and political instability forced companies like Sime Darby to exit their investments, leaving inexperienced hands to take over.
The government’s reliance on investors to fulfill basic social responsibilities like building schools and hospitals in concession areas has deterred investors. When a government puts these responsibilities on investors, it creates a power imbalance during negotiations. Weak legal protections and a lack of skilled workers further discourage investment in Liberia. Investors fear theft and corruption, leading to additional costs for bringing in experts.
Liberia’s poor infrastructure and unstable electricity supply also contribute to the unattractiveness of the country as an investment destination. Without an enabling environment that includes political stability, market potential, infrastructure development, skilled workforce, and legal protections, foreign direct investment will continue to decline.
The government must reevaluate its approach to concessions and stop burdening investors with its responsibilities. Investors expect a level playing field and opportunities to maximize their returns, not to take on the government’s duties. Without addressing these challenges, Liberia risks losing potential investments, as seen with the situation at Bea Mountain in Capemount County.
In conclusion, Liberia needs to create a conducive environment for investment by addressing issues related to political stability, market potential, infrastructure development, human capital, and legal protection. By prioritizing these factors and reconsidering its role in concessions, the government can attract much-needed investment to drive economic growth and development in the country.
Read the original article on The Newdawn Liberia
