Monrovia - The Executive Director of the Liberia Labour and Governance Alliance, George S. Tengbeh, has sounded the alarm over what he describes as a deep structural failure in how Liberia manages its natural resources, urging the government to adopt a bold "Trade-for-Transformation Strategy" to convert resource wealth into industrial growth and national prosperity.
Drawing on what he termed "scaring data" from the Liberia Extractive Industries Transparency Initiative (LEITI) spanning 2016 to 2022, Tengbeh said Liberia has generated hundreds of millions of dollars from its natural resources--iron ore, gold, diamonds, rubber, and timber--yet the benefits remain largely invisible in the lives of ordinary citizens.
"A Resource-Rich Nation Without Results"
In his research analysis titled "From Extraction to Transformation -- A National Call for Trade Justice and Industrial Growth (LEITI 2016-2022 Evidence Speaks Volumes)," Tengbeh argued that Liberia's poverty is not due to lack of resources but poor negotiation and governance.
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"Liberia is not poor but is poorly negotiated by some corrupt elites, and this has to end now," he said, referencing recent national discussions following the vice president's visit to Grand Cape Mount County.
He warned that Liberia stands at a critical crossroads as global partners--particularly the United States--shift from aid to trade and investment.
"As the United States, through the U.S. Embassy Monrovia, signals a strategic shift from foreign aid to trade and investment, we must decide whether we will remain a resource-rich but poor nation or rise as a competitive economic partner," Tengbeh stressed.
"In the words of Nick Checker, 'Sustainable economic growth does not come from aid. It comes from private enterprise.' This is not a warning; it is an opportunity. But only if Liberia is prepared to negotiate with vision, courage, and national interest at the center."
Billions Extracted, Little Returned
According to Tengbeh, LEITI data reveals that Liberia generated:
- US$48 million (2016/2017)
- US$53 million (2017/2018)
- US$71 million (2018/2019)
- US$67 million (2019/2020)
- US$84.7 million (2020/2021)
- US$182.35 million (2021/2022)
"In total, this amounts to hundreds of millions of dollars derived from Liberia's natural wealth," he noted.
"Yet the lived reality of the Liberian people tells a different story: communities in concession areas remain impoverished, roads are impassable, schools operate under trees, and hospitals struggle to function."
He described this gap as a "structural contradiction," not an accident.
"Peanuts" from Concessions
Tengbeh criticized Liberia's concession model as fundamentally flawed, arguing that foreign companies acquire vast land at minimal cost.
According to LEITI data he cited, companies pay as little as $0.20 per acre during exploration, increasing to about $5 per acre in early mining stages and roughly $10 per acre later--figures he described as insignificant compared to the profits generated.
Royalty rates, he added, are equally low:
- Iron ore: ~4.5%
- Gold and base metals: ~3%
- Diamonds: ~5%
"These small percentages mean that even as millions, and in some cases billions, of dollars' worth of minerals are exported, the share that returns to the Liberian government... remains disproportionately small," he said.
A System That Must Change
Tengbeh emphasized that although extractive industries account for more than 50% of GDP and up to 99% of exports, Liberia captures only a fraction of their true value.
"In simple terms, Liberia is not poor; the system governing its wealth is," he said.
He warned that the current concession framework--focused narrowly on royalties and surface rents--has failed to deliver inclusive development.
Trade-for-Transformation Strategy
To reverse the trend, Tengbeh called for a comprehensive shift in policy, urging the government to renegotiate concession agreements with stronger national benefits.
"This is why the global shift from aid to trade must trigger a domestic policy revolution," he said.
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"Instead, Liberia must pursue a Trade-for-Transformation Strategy, where natural resources are leveraged not just for revenue, but for national industrialization."
He proposed binding requirements for investors, including:
- Construction of processing plants and manufacturing factories
- Development of industrial parks and special economic zones
- Investment in energy and transport infrastructure
- Mandatory technology transfer and skills development for Liberians
"This would ensure that extraction leads to production, and production leads to prosperity," he added. "It would move Liberia up the value chain, from exporting raw materials to producing finished goods."
Call for Bold Leadership
Tengbeh concluded with a call for decisive action, urging policymakers to abandon weak agreements and prioritize national interest.
"Liberia must rise to this moment with bold leadership and smart negotiation. We must stop signing agreements that mortgage our future for minimal returns. We must demand deals that reflect the true value of our resources and the dignity of our people," he said.
