12 February 2016

Liberia: 'Increase Political Risk Hampering Economy' - Finance Minister

Monrovia — Finance and Development Planning Minister Amara Konneh says Liberia's political transition is contributing to the economic financial crisis. According to him, during political transition in any country, investors take into account political risk in their investment. Minister Konneh said: "There is increase political risk. I am talking about increase political risk from the perspective of the investors. When countries are going through political transition, there is this component in your investment decision call political risk. You evaluate it base on security and violence in the country, reform and governance."

Appearing before the House of Representatives Ways, Means and Finance committee, he told lawmakers that Liberia has been able to attract more investors based on the price of its basic export commodities on the world market but reduction in the prices of these commodities and with Liberia on its way to a major political transition, there is a high political risk being considered by investors.

Minister Konneh was invited by the House Representatives to give a detail explanation on the state of the country's economy a day after he escaped a 48 hour jail sentence from the Liberian senate who charged him with contempt for usurping his function. Representative Ben Fofana Margibi County and co-chairman on the committee had requested the Minister to reappear before the committee with a more detail explanation on the state of the economy.

Liberia has reportedly signed and ratified more than sixteen billion investment that is arguably making no impact in improving the lives of the ordinary Liberia. Of late many concessions have closed down reducing Liberia revenue collection and leaving hundreds of Liberians out of job. Statistics from the international monetary fund show that in 2014 because of the Ebola outbreak in Liberia, the GDP dropped from 8.9 to 0.7 and that consumer's price declaim, leaving Liberia at position 179 on the human development index chart which means 80% of Liberian lived below the poverty belt.


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