Liberia is endowed with enormous natural resource wealth as well as a large coast and a youthful and dynamic demographic profile. Its economy, which has been growing on a steady basis, is hinged on mining, forestry, agriculture (rubber and palm oil), fisheries, as well as a number of burgeoning service sectors. As a result of ongoing reform, the construction of telecommunication infrastructure and invigorated investment coming from the private sector, the country is emerging as a key attractive destination for sustainable investing and entrepreneurship throughout the West Africa sub-region.
Reasons to Start Industry in Liberia
1. A strategic location and convenient access to international trade- Liberia’s coastline along the Atlantic Ocean and proximity to the major shipping routes provide natural access for trade and shipment for the landlocked neighbor countries, including Guinea and Sierra Leone. The significant potential of the port of Monrovia, one of the largest deep-water ports in West Africa, for export-oriented industries.
2. A large number of natural resources, such as iron ore, gold, diamonds, and bauxite, as well as timber, allow creating the foundation for further value-added industries which include the level of mineral processing, steel manufacturing, or furniture production. The appropriate management of the country’s rich forestry resources will open significant opportunities for industrial wood processing.
3. Opportunity in the agricultural and marine areas- Given the tropical climate and fertile soil in Liberia, the already available rubber, cocoa, and coffee can be supplemented with the production of palm oil, rice, and cassava. Moreover, the extensive access of Liberia to the coast and number of the river will provide opportunities for fishery and aquaculture sectors that can be developed for the local and export markets.
4. The relatively stable political environment and reforms in the business sector- The recent advancement in the country’s political system, the active anti-corruption agenda, and many recent economic initiatives and reforms have already been able to demonstrate the government’s pro-trade and businesses position. Current key initiatives of the Liberian government, especially in the area of its “Pro-Poor Agenda for Prosperity and Development”, include the focus on the private sector, and improvement in the field of doing business such as new registrations, taxes, or access to finance.
5. The appropriate level of infrastructure and energy provision- Meanwhile, recent significant progress in roads, ports, and ICT development has been achieved in Liberia, the ongoing and planned progress besides the particular electric power where significant enhancement could be granted by new hydro and solar investment. The reduction in the costs for the business of energy supply will create an appropriate business climate for further industrial development and new start-ups in Liberia.
Availability of Raw Materials and Supporting Factors
Other examples include Liberia’s rich mineral sector, also known as an economic mainstay, which is rich in iron ore, diamonds, and gold and is employing investors in mineral beneficiation, jewelry-making, steel rolling mills, and mining equipment establishment; and another key water forestry and timber.
With more than 40% of the country’s territory covered by forests, Liberia enables investors in plywood, furniture manufacturing, veneer, and paper production.
Veneer plantations remain critical; again, through a value addition approach. The government has limited the exportation of raw logs entirely to home and foster the growth of the local economy.
Rubber is another example of production in Liberia that has been on the rise. Due to the increasing investment in agro-processing business, including employers investing in palm oil refining, rice and cassava mills, the roast of cocoa and coffee, and sweet fittering and fruit juice plants:
Why Select Industry for Startup in Liberia
1. Agro-processing and food industry: oriented economy allows setting up palm oil or fruit juice refineries, mills for rice and cassava, and a dairy industry, all of which would seriously reduce import dependence and provide jobs.
2. Mining and mineral processing: same iron ore, gold beneficiation, and the metals production using local and abundant mineral resources would deprive the country of the export break and would correlate with economic diversification strategy.
3. Timber and furniture manufacture: given the fact that the country is covered at least a third of the forests, sawmills, furniture or plywood workshops, paper mill, carton factory etc. will benefit from high ecological value and marketability.
4. Construction and building materials: with the country’s rapid urbanization and infrastructure development, there is a high demand for cement, steel iron, zinc, tiles, paints, ceramics, and prefabricated building components.
5. Renewable energy and ICT: a potential solar power bank production, hydroelectric small and foreign companies or mobile and banking technologies would also tie well with the ongoing and future government electricity projects that claim to connect the entire countries to the grid in the nearest future.
Market Demand
- Market demand in Liberia is predicted to increase as a result of the following factors: growing scale of the urban population; increasing the pace of the middle-class consumers; and rising scope of the regional trade donor potential.
- Other market demand stimuli that have been examined within the industry review involve the aggravated; demand for processed foods, soft and grocery goods; demand for available housing and building services; the level of mine and industry relative intensity of machinery and logistic services; available market for the industry branch digitalization e.g. ICT, fintech, and communication services. demand and supply of renewable energy and eco-based infrastructure in Liberia and the region as a whole
Government Support and Incentives
Therefore, the Liberia National Investment Commission has a broad spectrum of incentives designed to attract investment from local and foreign investors and such incentives include:
- Investment Code with tax holidays and duty free allowance on imported machinery and materials;
- Reduced corporate tax rate for investment in priority sectors;
- Repatriation of profit and dividend by foreign investor;
- Access to industrial land and serviced plots in designated SEZ;
- Business registration and licensing in a one stop investment center;
- Public private partnership in infrastructure, energy, and logistics.
In conclusion, despite the dauntingness of Liberia’s industrialization and economic diversification roadscape, an ever-growing number of preconditions allow for the belief that the country is well on-track to not only meet but also outstrip its energy-transformation aspirations. Natural resource endowment and a strategic Atlantic position have fallen in line with the private sector’s fast development and affordably luxurious business ecosystem. Agro-processing, mining, timber, renewable energy, ICT, and others, multiple industries are showing exceptionally bright prospects and either already boast or are on their way to offering the best conditions for both local-based and foreign investors. Coupled with the sheer insistence on CoLA’s government-led reforms and the unfailingly generous incentives to investment, Liberia shapes up to be one of the West African countries that could very substantially enrich an investment portfolio and guarantee persistence of high-profit expectations.
