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Tuesday, November 12, 2024

Liberia’s Missed Opportunities: The Urgent Need for Innovation and Private Sector Growth

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As Liberia’s President Joseph Boakai embarks on numerous international trips in search of investments, the stark reality of the country’s economic challenges becomes increasingly evident.

Despite the president’s lofty promises of transforming Liberia into a middle-income country within six years, the nation’s inability to foster a vibrant private sector and drive innovative solutions remains a significant impediment to achieving this ambitious goal.

The recent Central Bank of Liberia report paints a grim picture, highlighting the contraction of the Liberian economy in two quarters. This means economic activities such as employment, investment, and consumer spending were on the decline for six months.

This troubling trend puts to shame  the government’s focus on creating government-appointed jobs with lucrative salaries, a strategy that heavily relies on tax revenue rather than sustainable economic development.

Liberia’s lack of innovation and the inability to build a robust private sector are at the heart of the country’s economic woes. While President Boakai has traveled extensively in search of investment, the results have been elusive, with the President’s speeches often veering towards recounting Liberia’s history rather than presenting concrete plans for attracting and nurturing new businesses.

The country’s untapped potential is evident in its 350-mile coastline, which could be transformed into a thriving tourism industry, potentially generating millions of dollars annually.

Even since the inception of this administration there is no known plan on the development and opening of the tourism sector. In its first  national budget zero dollar was appropriated for tourism it claims to be a top priority. A visa-free policy could be a starter, the Oracle News Daily suggests.

Further undermining the country’s ability to stimulate local trade, is

the government’s execution of infrastructure projects, such as the construction and upgrading of roads to improve farm to market access, which has been plagued by issues of fraud and substandard work.

The contrast between the government’s focus on creating government-appointed jobs and the urgent need to build a competitive, private sector-driven economy is glaring. While the former may provide short-term relief, it does little to address the root causes of Liberia’s economic challenges and the pressing need for sustainable job creation.

To turnaround Liberia’s economy, the government must prioritize fostering a culture of innovation and entrepreneurship.

This can be achieved through targeted investments in education, the facilitation of access to credit and resources for small and medium-sized enterprises, and the creation of an enabling environment that encourages risk-taking and the development of homegrown solutions.

Liberia’s lack of competitiveness was clearly demonstrated at the recent Indonesia-Africa summit, where the country stood to benefit relatively little as Indonesia sought to sign multi-billion dollar trade and investment agreements with nations that offered greater market potential and natural resources.

The time has come for Liberia to shift its focus from political appointments and empty rhetoric to concrete actions that address the fundamental barriers to economic growth. Investing in infrastructure and human capital, Liberia can unlock its true potential and provide sustainable opportunities for its people.

The path forward may be challenging, but it is a necessary one if Liberia is to break the cycle of economic stagnation and become the thriving, middle-income country that the President has promised. The urgency for change is clear, and the government must act decisively to position Liberia as an attractive destination for investment and economic development.

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