Liberia offers significant opportunities for foreign investors in natural resources and specialized sectors, but persistent corruption, weak infrastructure, and regulatory uncertainty continue to impede the country's economic growth, according to the U.S. Department of State's 2025 Investment Climate report on Liberia.
The report identifies sectors such as mining, agriculture, aquaculture, and forestry, as well as energy, telecommunications, agribusiness, climate financing, tourism, and financial services, as potential avenues for investment. However, the U.S. assessment paints a sobering picture of the challenges investors face.
"Liberia's economy relies heavily on imports for even basic needs, including fuel, machinery, clothing, and rice," the report states. It highlights that Liberia's commodities-based economy is highly vulnerable to external shocks due to its dependence on exports of iron ore, gold, diamonds, rubber, oil palm, and timber.
Despite these challenges, Liberia's economy grew by 5.1 percent in 2024, fueled by mining, agriculture, fisheries, and services. Strategic investments in infrastructure and energy, supported by international partners including the World Bank, USAID, IMF, African Development Bank, and European Union, contributed to this growth. Inflation fell to 7.7 percent in 2024, down from 10 percent in 2023.
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In January 2025, the government launched the ARREST Agenda for Inclusive Development (AAID), a five-year national development plan focusing on agriculture, roads, rule of law, education, sanitation, health, and tourism.
"The government is undertaking initiatives to improve infrastructure, reduce corruption, establish predictable business policies, and enhance the investment climate," the report notes. Yet, longstanding barriers remain, including low human development, poor road networks, unreliable electricity, limited internet access, and pervasive corruption.
The report is particularly critical of Liberia's governance and transparency, noting that foreign investors face difficulties in accessing government officials without offering bribes. "Government decisions affecting the business sector are driven more by political cronyism than investment climate considerations," the report says, describing instances where businesses operating legally receive little support or are even targeted by officials demanding unofficial payments.
While Liberia has anti-corruption laws and initiatives, including the Liberia Anti-Corruption Commission (LACC)and theOffice of Assets Recovery, enforcement remains weak. According to the report, "Private companies do not have structured internal controls or ethics programs to prevent bribery of public officials. Corruption is pervasive in procurement, concessions, taxation, and regulatory systems."
The Transparency International Corruption Perceptions Index showed Liberia improving slightly in 2024, rising from 145 to 135 out of 180 countries, yet the report emphasizes that corruption remains a significant obstacle to both domestic and foreign investment.
Liberia's investment framework includes the National Investment Commission (NIC), the Ministry of Finance and Development Planning (MFDP), and the Liberia Business Registry (LBR), among others. While the NIC promotes foreign investment and oversees large contracts, investors report non-transparent contract awards, low skilled labor, and legal uncertainties.
The 2010 Investment Act restricts foreign ownership in certain sectors, mandates minimum capital investments, and requires government approval for contracts exceeding $10 million. The report cautions that investors must often rely on agents, distributors, or legal counsel to navigate market entry and ensure compliance with Liberia's complex regulatory system.
"Foreign investors report that government officials often view them as opportunities for short-term graft rather than partners in long-term growth," the report observes.
Infrastructure is a glaring barrier, with the report noting the urgent need for improvements in electricity generation, airports, and transportation networks, particularly roads and bridges. Liberia's low manufacturing base further compounds the country's vulnerability to global market fluctuations.
Despite these hurdles, the report identifies sectors with high potential for U.S. investors, including agro-processing and food production, renewable energy, ICT, fintech, manufacturing, and waste management. Special Economic Zones, such as the Buchanan Special Agro-Processing Zone (SAPZ) and the Monrovia Freezone, are highlighted as areas where investments can benefit from incentives like customs duty relief and tax exemptions.
"The SAPZ will focus on value-added agricultural activities, processing raw materials into finished products for domestic and export markets," the report notes, emphasizing that substantial private and public investment will be required to develop supporting infrastructure.
The report also underscores Liberia's limited human capital, with a functional literacy rate below 50 percent and a predominance of informal employment. Approximately 90 percent of Liberians work in the informal sector, often under unsafe or low-wage conditions. Foreign companies frequently report difficulty finding skilled local labor, particularly in STEM fields.
"The Decent Work Act provides a legal framework for labor rights, but enforcement is weak, and child labor remains a concern in extractive industries," the report adds.
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Liberia's financial sector, led by the Central Bank of Liberia, is stable but underdeveloped. Non-performing loans remain high at 19 percent, and digital financial services are not yet fully integrated. Nonetheless, foreign investors are permitted to freely repatriate funds, and investment financing is supported through programs like the U.S. International Development Finance Corporation (DFC)andUSAID loan guarantees.
Liberia has experienced two decades of peace following the end of civil wars in 2003. The 2023 presidential election was deemed generally peaceful and credible. The report notes, however, that potential security threats include land disputes and high rates of youth and urban unemployment. Law enforcement agencies and private security firms maintain security, but their effectiveness is hampered by resource constraints.
The U.S. report paints a mixed picture of Liberia as an investment destination: abundant opportunities exist in natural resources, agriculture, energy, ICT, and financial services, yet investors must navigate a challenging environment marked by corruption, weak infrastructure, limited skilled labor, and regulatory uncertainty.
"Liberia is a country with tremendous potential, but investors must weigh the risks carefully and adopt strategies that include strong local partnerships and legal guidance," the report concludes.
